Location: Sibley County, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI 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 | $1,170 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,380 |
| 5 Bedrooms | $2,761 |
| 6 Bedrooms | $3,092 |
| 7 Bedrooms | $3,339 |
| 8 Bedrooms | $3,506 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,610 | $284,848 | 0.57% | F |
| 3BR | $2,110 | $337,003 | 0.63% | D |
| 4BR | $2,380 | $373,578 | 0.64% | D |
| 5BR | $2,761 | $404,849 | 0.68% | D |
U.S. Census Bureau data (2024)
The ZIP code 56011, located in Belle Plaine, Minnesota, presents an interesting scenario when viewed from the perspective of a renter. The median household income in this area stands at $102,522, which provides a solid financial foundation for residents. However, when considering the market rate for rent, which is $1,360 according to the Census ACS, the picture becomes more nuanced.
To understand the affordability gap, let's break down the numbers. A household earning the median income of $102,522 would allocate approximately 16% of their annual income toward rent at the market rate. This is within a reasonable range, suggesting that the typical household in ZIP 56011 can indeed afford the average rental price without significant strain.
However, the Federal Market Rent (FMR) for ZIP 56011 in fiscal year 2024 is set at $1,490. This amount represents the maximum payment standard for housing vouchers, which is higher than the market rate. For renters who rely on housing vouchers, this means they could potentially afford slightly higher rents, but it also implies that landlords accepting vouchers might face less competition compared to those seeking cash-paying tenants.
With only 13.6% of the 9,921 population being renters, the overall demand for rental properties is relatively low. This suggests that landlords must be strategic in how they position their properties to attract tenants. Accepting vouchers can be a viable strategy, given the higher payment standard compared to the market rate. It also helps fill units that might otherwise remain vacant due to limited rental demand.
The takeaway for landlords is clear: while there is a small affordability gap between the market rate and the voucher payment standard, the low percentage of renters in ZIP 56011 means competition for tenants is fierce. Landlords should consider the benefits of accepting vouchers, such as a guaranteed source of income and access to a segment of the market that might not otherwise be able to afford local rents. Additionally, offering competitive amenities and maintaining well-maintained properties will be crucial in attracting both voucher and cash-paying tenants.
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.