Section 8 Fair Market Rent (FMR) for ZIP 55981 - 2027

Location: Wabasha County, MN | Metro: Wabasha County, MN HUD Metro FMR Area

Investment Score for ZIP 55981

F
Monthly Rent (2BR)
$1,120
Median Price (2BR)
$264,325
1% Rule
0.42%
Annual Yield
5.08%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$990
1 Bedroom$1,030
2 Bedrooms$1,120
3 Bedrooms$1,470
4 Bedrooms$1,530
5 Bedrooms$1,775
6 Bedrooms$1,988
7 Bedrooms$2,147
8 Bedrooms$2,254

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,120 $264,325 0.42% F
3BR $1,470 $313,790 0.47% F
4BR $1,530 $385,034 0.4% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
3,955
Median Household Income
$71,607
Housing Units
2,272
Renter Percentage
22.0%
Occupancy Rate
81.3%
Renter Occupied
407

The ZIP code 55981, encompassing Wabasha, Minnesota, is a rural community situated along the Mississippi River. Known for its serene landscapes and close-knit community, Wabasha offers a stable environment for real estate investments, particularly in rental properties.

Investors looking to enter the Wabasha market can expect a niche but consistent rental demand. With the Fair Market Rent exceeding the average market rent, there's potential for rental properties to command higher rates. The median home value suggests that while property values are not exceptionally high, they offer a solid foundation for investment. Given the 22.0% renter share, there is a clear need for affordable housing options, making it a favorable environment for small-scale landlords and portfolio investors. The median income level supports the feasibility of tenants meeting rental obligations, reducing financial risk. Overall, Wabasha presents a balanced opportunity for those interested in a low-key, yet promising, real estate market.

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.