Location: Rochester, MN | Metro: Rochester, MN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $292,988 | 0.43% | F |
| 3BR | $1,770 | $343,087 | 0.52% | F |
| 4BR | $2,130 | $405,260 | 0.53% | F |
U.S. Census Bureau data (2024)
Eyota, MN, located in ZIP code 55934, is a small rural community with a total population of 3,466 residents. The area has a relatively low percentage of renters at 18.2%, indicating that it is primarily composed of homeowners. The median household income in this region stands at $84,952, which is above the national average, suggesting a stable and financially capable local population. The median home value in Eyota, MN is $353,816, reflecting a modestly priced housing market compared to larger metropolitan areas.
From an investment perspective, the rental economics in ZIP 55934 are particularly interesting. The Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2024, is $1,110. This figure represents the maximum amount that a Section 8 tenant can pay towards their rent. In contrast, the Census Bureau's American Community Survey (ACS) reports the average market rent for the area at $826. This discrepancy between the FMR and the actual market rent presents a significant opportunity for landlords and small-portfolio investors who are willing to participate in the Section 8 program.
The difference between the FMR and the market rent suggests that there is room for profit even when adhering to the subsidized rent levels. However, the decision to invest in this area should be based on the type of investment strategy one wishes to pursue. For a hands-off voucher operator, the lower percentage of renters might present a challenge in finding enough tenants to fill properties. On the other hand, a hands-on value-add buyer could find opportunities to improve property values and rents over time, leveraging the financial stability of the local population and the potential for increased demand as the community grows.
In summary, ZIP 55934 offers a stable economic environment with a strong local economy, making it a suitable location for investors interested in the Section 8 program. The gap between the FMR and market rent provides a clear advantage for those who can manage the administrative aspects of the program. For hands-on investors, the potential exists to enhance property values and rents, aligning with the financial capabilities of the residents.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.