Location: Wabasha County, MN | Metro: Wabasha County, 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 | $910 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $257,067 | 0.4% | F |
| 3BR | $1,350 | $375,032 | 0.36% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 55945, located in Kellogg, MN within Wabasha County, reveals several key points that can influence investment decisions. The HUD Fair Market Rent (FMR) for the area is set at $980 for the fiscal year 2024. This figure is notably higher than the market rent reported by the Census American Community Survey (ACS), which stands at $881.
The disparity between the HUD FMR and the actual market rent suggests that voucher tenants in this region will generally cashflow positively when renting at the HUD rate. Landlords accepting Section 8 vouchers should expect to see a positive difference between the voucher amount and the typical market rent, indicating a solid cashflow potential for investors.
To further understand the rental market dynamics, we can look at the median home value in the area, which is $348,097. Using this figure, we can calculate a rough rent-to-price ratio. Assuming an average mortgage rate and property tax, the monthly cost to own a home in this area would be significantly higher than the market rent, making renting more attractive than buying. However, given the lack of specific data on median Days on Market (DOM) and the percentage of homes that have been price-cut, it's difficult to provide a precise comparison between renting and buying. These metrics would typically indicate how quickly properties sell and at what price adjustments, which could affect the overall stability and appreciation potential of the market.
In conclusion, the strongest angle for Section 8 investors in ZIP code 55945 is the potential for positive cashflow, given the higher HUD FMR compared to the actual market rent. This makes the area particularly appealing for those looking to secure steady rental income without the risks associated with fluctuating market conditions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.