Location: Steele County, 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 | $260,304 | 0.49% | F |
| 3BR | $1,770 | $293,150 | 0.6% | D |
| 4BR | $2,130 | $332,318 | 0.64% | D |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) set at $1110 for ZIP code 55946 in Kenyon, MN, for fiscal year 2024, landlords can expect to receive this amount per unit through the Section 8 program. The actual market rent, as reported by the Census Bureau's American Community Survey, stands at $881, indicating a premium for Section 8 participants. Given the median home value of $295,963, it's clear that the housing market in this area is relatively stable and affordable. With only 11.3% of the population being renters, the demand for rental properties is moderate, suggesting that landlords should focus on maintaining quality units to attract tenants. The median income of $85,781 provides insight into the financial capacity of residents, which can support higher rents but also indicates a competitive landscape for rental properties. Although there is no available data on the average days on market (DOM) or the percentage of homes that have had their prices cut, the existing figures suggest a balanced market. The difference between the FMR and the market rent highlights a potential opportunity for landlords to participate in the Section 8 program, as they can charge closer to the FMR while still offering affordable housing. In conclusion, the data points towards a favorable environment for landlords interested in Section 8, particularly due to the discrepancy between the FMR and market rent.
$1110 FMR suggests that Section 8 vouchers can cover a significant portion of the rent, making it attractive for landlords to accept these vouchers. Meanwhile, the $881 market rent reflects the current economic reality faced by many tenants, underscoring the importance of the Section 8 program in this community. The median home value of $295,963 places this area within a range that is neither too expensive nor too cheap, creating a middle-ground market that can be appealing to a broad spectrum of buyers and renters. The 11.3% renter share indicates a smaller rental market compared to owner-occupied homes, meaning that landlords who cater to the needs of Section 8 participants could capture a larger slice of the rental pie. Lastly, the median income of $85,781 provides a baseline for understanding the financial health of the local population, which is crucial for assessing the viability of rental properties. Despite the lack of specific data on DOM and price-cut shares, the overall picture painted by the available figures is positive for Section 8 participation.
Section 8 verdict: Accepting Section 8 vouchers is a financially sound decision in ZIP 55946, given the disparity between FMR and market rent, alongside the stable median home values and income levels.
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.