Location: Wabasha County, MN | Metro: Wabasha County, MN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,170 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 55968 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1230 for fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting local rental conditions more accurately than broader metro or county averages.
In contrast, the local market rent for a similar unit is recorded at $1,056 according to the Census ACS data. Landlords might wonder how these numbers translate into actual payments when a tenant uses a Section 8 voucher. Here's a breakdown:
A Section 8 voucher holder pays 30% of their adjusted income towards rent, while the program covers the remainder up to the SAFMR limit. For ZIP 55968, if a tenant's share is $315 (assuming an adjusted income of $1050), the voucher would cover the rest, up to $1230. However, the total payment includes a utility allowance, which varies but typically adds around $100 to the base rent.
This means the maximum reimbursement a landlord can receive for a two-bedroom apartment in ZIP 55968 is $1330 ($1230 base rent + $100 utilities). If the market rent is lower, say $1,056, the landlord still receives the full $1,056 plus the utility allowance, making the effective payment closer to $1,156.
The reimbursement gap or surplus arises from comparing the SAFMR with the actual market rent. In ZIP 55968, where the market rent is below the SAFMR, landlords participating in the Section 8 program for a two-bedroom unit will find themselves with a surplus. The difference between the SAFMR and the local market rent is $174 ($1230 - $1056). Adding the utility allowance brings the total surplus to $274 per month.
To summarize, landlords in ZIP 55968 can expect a higher reimbursement than the local market rent for a two-bedroom unit, thanks to the SAFMR being set above the average local rent. This creates a financial incentive to participate in the Section 8 program, ensuring a steady income that exceeds the typical market rate.
Data Sources: FMR data from HUD (2027). 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.