Location: Winona County, MN | Metro: Winona County, MN
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 | $750 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,290 | $294,688 | 0.44% | F |
| 4BR | $1,560 | $350,062 | 0.45% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 55959 in relation to Section 8 housing reveals several potential challenges that landlords should be aware of before entering into such agreements. First, tenant turnover is a significant concern. The market rent stands at $851, while the Fair Market Rent (FMR) for the area is $1,030 for fiscal year 2026, indicating a gap between what tenants might be willing to pay and the government's subsidy rates. This disparity can lead to higher turnover rates as tenants seek out more affordable options, thereby increasing the frequency of lease renewals and associated administrative costs.
Vacancy exposure is another critical issue. The average days on market (DOM) for rental properties in this area is currently unknown, which makes it difficult to predict how long a property might remain vacant. A prolonged period of vacancy can result in lost rental income and increased expenses for maintenance and marketing. Furthermore, the typical home value in ZIP 55959 is around $300,713, while the median household income is $67,617. This suggests that many residents may struggle to afford even the subsidized rents, potentially leading to deferred maintenance issues if tenants cannot keep up with their portion of the costs.
However, these risks must be weighed against the high concentration of renters in the area. With 23.4% of households classified as renters, there is a strong likelihood of high demand for rental properties, particularly those that accept Section 8 vouchers. High renter density often translates into a robust pool of voucher holders, ensuring a steady stream of qualified tenants who can provide consistent rental income.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.