Location: Watonwan County, MN | Metro: Brown County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 56019 for Section 8 properties, follow this decision tree:
1) Does FMR $970 (metro FY 2026) clear debt service on a $292,060 property?
Yes. The Fair Market Rent (FMR) of $970 is sufficient to cover the debt service on a property valued at $292,060. Assuming a typical debt service ratio, this indicates that the rental income will meet the financial obligations associated with the mortgage and other expenses.
No. If the FMR of $970 does not cover the debt service, then purchasing a property in ZIP 56019 would not be financially viable under Section 8 guidelines.
2) Is market rent $641 (Census ACS) above, at, or below FMR?
Above. If the market rent exceeds the FMR, then the area is overpriced relative to what Section 8 tenants can afford. This would make it difficult to find eligible tenants, and thus, not a good investment for Section 8.
At or Below. With the market rent at $641, which is below the FMR of $970, the area is well-priced for Section 8 tenants. Landlords can expect to attract and retain eligible tenants without significant vacancy concerns.
3) Are 19.5% renters + N/A-day days on market (DOM) enough demand?
Yes. With 19.5% of residents being renters, there is a reasonable demand for rental properties. Although the days on market (DOM) data is not available, the percentage of renters suggests that there is a steady need for housing, making it likely that properties will be occupied promptly.
No. If the percentage of renters were lower, there might be insufficient demand for rental properties. However, given the 19.5% figure, this branch is not applicable.
It Depends. Without specific DOM data, it's challenging to gauge how quickly properties are leased. If the DOM is high, it could indicate slow leasing times despite the percentage of renters. Conversely, if DOM is low, it supports the notion that demand is strong enough to justify an investment.
In summary, if the FMR of $970 covers the debt service on a $292,060 property and the market rent of $641 is at or below the FMR, then the answer is Yes. The 19.5% renter population supports sufficient demand, but the absence of DOM data means that prompt leasing cannot be guaranteed. Therefore, further investigation into DOM is recommended before making a final decision.
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.