Location: Mower 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 | $1,040 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,000 | $330,603 | 0.6% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 55967 in Mower County, Minnesota reveals mixed outcomes for potential Section 8 landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for Section 8 in this zip code for fiscal year 2024 is set at $910. In contrast, the market rent, as reported by the Census ACS, stands significantly higher at $1,271. This means that landlords would need to accept a rent that is approximately $361 less than the market rate if they choose to participate in the Section 8 program. While this difference can still make financial sense for some landlords, especially those who benefit from reduced vacancy rates and stable income, it is important to recognize the gap between subsidized and market rents.
Regarding the affordability of acquisition, the median home value in ZIP 55967 is $349,043. Unfortunately, the data does not provide insights into the number of days on the market (DOM) or the percentage of homes that have had their prices cut. This lack of information makes it challenging to assess how competitive the housing market is for potential acquisitions. However, the median home value suggests that purchasing properties in this area requires a substantial investment, which could be a barrier for smaller investors looking to enter the market.
Lastly, there is an examination of tenant demand. With a population of 1,001, only 5.0% of residents are renters. This indicates a relatively low demand for rental properties, which could pose challenges for landlords seeking to fill units. Given the limited number of potential tenants, landlords might face difficulties in attracting eligible Section 8 participants, especially if the number of vouchers available does not match the low renter share.
In summary, while the rent math for Section 8 in ZIP 55967 is favorable compared to market rents, the high median home value and low renter share present significant hurdles. Landlords should carefully consider these factors before investing in this area, particularly focusing on the potential for lower occupancy rates and the financial implications of accepting a lower rent compared to market levels.
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.