Location: Wabasha 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 | $1,260 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $360,119 | 0.42% | F |
| 3BR | $2,090 | $487,925 | 0.43% | F |
| 4BR | $2,520 | $595,551 | 0.42% | F |
| 5BR | $2,923 | $707,958 | 0.41% | F |
U.S. Census Bureau data (2024)
ZIP code 55960, located in Oronoco, MN within the Wabasha County, MN HUD Metro FMR Area, exhibits characteristics that suggest it is a value pocket within its metro. The Fair Market Rent (FMR) for ZIP 55960 is set at $1,510 for fiscal year 2024, which is notably higher than the average market rent of $1,200. This discrepancy between FMR and market rent indicates a potential subsidy advantage for landlords participating in the Section 8 program.
The median home value in ZIP 55960 stands at $538,558, which is likely above the county-wide average given the rural setting of Wabasha County. However, the renter share of 6.7% is relatively low compared to other areas within the county. Typically, a higher renter share might signal a greater demand for rental properties, but in this case, the lower share could mean fewer renters overall, possibly due to the area's demographic makeup or economic conditions.
Despite the high median home value, the combination of a slightly elevated FMR relative to market rent suggests that this ZIP code could be particularly attractive for Section 8 tenants seeking affordable housing options. Landlords here may benefit from the subsidy without facing the typically higher competition found in more densely populated areas with higher renter shares.
To conclude, while ZIP 55960 is not a premium sub-market given its lower renter share, it does represent a value pocket for Section 8 landlords and investors. The area offers a balance of affordability for tenants and potentially favorable returns for landlords, especially when considering the subsidies provided by the FMR rate.
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.