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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $188,570 | 0.54% | F |
| 3BR | $1,340 | $251,044 | 0.53% | F |
| 4BR | $1,340 | $319,337 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 55965, located in Preston, MN, has a population of 2,300 residents, with 21.8% being renters. This indicates that while the area has a significant portion of renters, it is not heavily dominated by rental properties. The median household income in this ZIP code stands at $65,577, which provides a benchmark for assessing the affordability of housing.
A typical market rent in this area is $756, which represents approximately 14.4% of the median household income. This suggests that the average rent is relatively affordable compared to the income levels of the residents. However, when considering the Fair Market Rent (FMR) set at $910 for FY 2024, the current market rent is below this threshold, indicating that there might be a higher demand for rental units that qualify for Section 8 vouchers.
The disparity between the market rent and the FMR highlights the potential for a deep voucher demand in the area. Landlords who offer units within the range of $756 to $910 could attract tenants benefiting from Section 8 assistance, thereby ensuring a stable and reliable source of rental income.
In terms of tenant profiles, landlords in ZIP 55965 should expect a mix of families and individuals who rely on Section 8 vouchers due to lower incomes. These tenants will likely have a history of seeking affordable housing solutions and may include those who are newly employed, retired, or receiving social assistance. Given the income levels and the percentage of renters, landlords can anticipate a steady demand for affordable housing options, particularly those that align with the financial support provided through Section 8 programs.
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.