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 | $900 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $208,005 | 0.57% | F |
| 3BR | $1,560 | $257,964 | 0.6% | D |
| 4BR | $1,570 | $310,465 | 0.51% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 55975, which includes Spring Valley, MN, stands at $77,411. Considering the market rate for rent is $967 per month according to the Census ACS, it becomes evident that the average household faces a significant challenge in affording housing without financial strain. This market rate represents approximately 13.8% of the annual median income, which is already a substantial portion.
Comparatively, the Fair Market Rent (FMR) set by the Housing Choice Voucher program for the fiscal year 2024 is $1050. This means that even with a voucher, the rent is higher than the market rate, putting additional pressure on renters who rely on subsidies. The discrepancy between the market rate and the voucher payment standard highlights an affordability gap that affects both tenants and landlords.
With only 18.6% of the 4,433 population being renters, the competition among landlords is relatively low. However, this also implies that there is limited demand for rental properties, which could affect occupancy rates and the ability to raise rents. Landlords must be mindful of the local economic conditions and the purchasing power of potential tenants.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While voucher payments are guaranteed, they are slightly above the current market rate, potentially making properties less attractive to non-subsidized renters. On the other hand, relying solely on cash-paying tenants might expose landlords to vacancy risks, given the tight budget constraints many households face. A balanced approach, where landlords are willing to accept vouchers but also actively seek out cash-paying tenants, is advisable to ensure steady income and minimize risk.
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.