Location: Fillmore County, MN | Metro: Fillmore 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $250,823 | 0.4% | F |
| 3BR | $1,340 | $318,657 | 0.42% | F |
| 4BR | $1,340 | $397,412 | 0.34% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Lanesboro, MN (ZIP 55949) for their rental portfolio might raise several concerns. Let's address these with the available data.
Will FMR $910 (zip FY 2024) cover the mortgage on a $333,155 home?
The Fair Market Rent (FMR) for a one-bedroom unit in ZIP 55949 is set at $910 for fiscal year 2024. To determine if this will sufficiently cover the mortgage on a $333,155 home, we must consider the typical mortgage rate and terms. Assuming a standard 30-year fixed-rate mortgage at an interest rate of 5%, the monthly payment on such a home would be approximately $1,786. Clearly, the FMR of $910 is insufficient to cover the mortgage alone, indicating that additional income sources or a higher rent rate would be necessary.
Is there enough renter demand at 19.3%?
Rental demand in Lanesboro, MN is measured at 19.3%. This figure represents the percentage of households that are renters. While this may seem low compared to urban areas, it is important to note that rural communities often have lower percentages of renters due to different housing preferences and availability. The data does not provide a comprehensive view of the total number of potential renters or the vacancy rate, which are critical factors in assessing demand. However, the 19.3% indicates that there is a consistent base of renters, though it may require active management and marketing efforts to maintain occupancy.
Will vouchers keep pace with $575 market rents?
The Housing Choice Voucher program, commonly known as Section 8, pays a subsidy directly to landlords on behalf of eligible tenants. The voucher amount is adjusted annually based on the local fair market rent. In ZIP 55949, the average market rent for a one-bedroom apartment is $575. Given that the voucher amount is pegged to the FMR, it should generally cover the $575 rent. However, the data does not specify the exact voucher amount for this area, so there could be discrepancies. It is also worth noting that voucher holders might face longer wait times, which can affect the speed at which units are filled.
In conclusion, while the FMR of $910 does not cover the mortgage on a $333,155 home, there is a steady rental market with 19.3% of households being renters. Vouchers should keep pace with the $575 market rents, but the specific voucher amounts and wait times need further investigation. For landlords and small-portfolio investors, the key is to understand the local market dynamics and manage expectations accordingly.
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.