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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $253,988 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 55990, located in Fillmore County, Minnesota, serves as a strategic cash-flow anchor within a Section 8 portfolio. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $1020, while the market rent stands at $843. This creates a positive spread of $177, ensuring that properties participating in the Section 8 program can generate higher rental income compared to the local market rates.
This spread is significant because it allows landlords to cover their expenses and maintain a steady profit margin. Given the median home value in the area is $267,081, the cost of property acquisition is relatively low compared to other regions, which further enhances the attractiveness of this ZIP code as a cash-flow generator. Landlords should focus on securing properties under the Section 8 program to benefit from the guaranteed higher rental rates.
Although there is no specific data available on price-cut share and days on market (DOM), the absence of these figures does not detract from the ZIP's role as a cash-flow anchor. Instead, the emphasis should be on the consistent demand for rental properties and the government-backed rental payments, which provide stability and predictability in an otherwise volatile real estate market.
ZIP 55990 also has a notable 21.2% share of renters and a median income of $72,500. While these factors do contribute to making the ZIP a potential diversifier within a broader investment strategy, the primary focus remains on its ability to anchor cash flow due to the favorable spread between FMR and market rent. This ensures that even if other parts of the portfolio experience fluctuations, the Section 8 properties in ZIP 55990 will continue to deliver reliable returns.
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.