Location: Goodhue 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 | $1,140 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,780 |
| 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 | $1,350 | $313,675 | 0.43% | F |
| 3BR | $1,780 | $367,419 | 0.48% | F |
| 4BR | $2,130 | $460,755 | 0.46% | F |
U.S. Census Bureau data (2024)
The median household income in ZIP code 55956, Mazeppa, MN, stands at $98,558. When considering the market rate for rent, which is $1,134 according to the Census ACS, it becomes evident that the cost of living is quite high relative to the income levels. This suggests that a significant portion of the household income would be dedicated to housing expenses, potentially straining budgets.
Comparatively, the Fair Market Rent (FMR) for ZIP 55956, set at $1,110 for fiscal year 2024, aligns closely with the market rate. This means that the difference between the market rate and the voucher payment standard is minimal, at just $24 per month. For households relying on Section 8 vouchers, this makes finding affordable housing challenging but not impossible.
Mazeppa has a relatively low percentage of renters at 15.8%, with a total population of 2,199. This indicates that the rental market is not highly saturated, which could mean less competition among landlords for tenants. However, the small number of renters also implies a smaller pool of potential tenants, making it crucial for landlords to consider their target audience carefully.
The affordability gap, where the market rate slightly exceeds the voucher amount, means that landlords who accept vouchers might have a steady stream of tenants but will receive slightly lower rent payments compared to those who rent to cash-paying tenants. Given the close alignment between the market rate and the voucher payment, landlords may find that accepting vouchers offers a reliable source of income without the risk of vacancy.
For landlords and small-portfolio investors, the key takeaway is that while the market rate is just above the voucher payment, the competition for tenants is moderate. Accepting vouchers can ensure a consistent tenant base, albeit with slightly reduced revenue. Cash-paying tenants might offer higher rents but come with the risk of vacancy in a less densely populated area with fewer renters.
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.