Location: Waseca County, MN | Metro: Le Sueur County, MN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56028 within Waseca County, MN, reveals it as a unique segment within the broader metro area. The Federal Market Rent (FMR) for ZIP 56028 is set at $1270 for fiscal year 2024. This figure contrasts sharply with the average market rent of $1,069. The discrepancy suggests that while landlords may be eligible for higher rental subsidies under the Section 8 program, the actual rents commanded in the market are lower, indicating a potential opportunity for investors seeking to leverage the Section 8 program.
The median home value in ZIP 56028 stands at $415,216, which is notably higher than what might be considered typical for many areas within Waseca County. This elevated home value could suggest a higher quality of housing stock or a more affluent demographic, though the presence of a 12.3% renter share complicates this narrative. In comparison to other ZIP codes within the county, a higher renter share combined with above-average home values can indicate a mixed-income community where rental properties, including those participating in Section 8, are situated alongside pricier owner-occupied homes.
The combination of a relatively high FMR compared to the market rent, along with a substantial renter share, points towards ZIP 56028 being a valuable niche for Section 8-focused real estate investments. Landlords who can secure tenants through the Section 8 program may find themselves in a position to command rents closer to the subsidy levels rather than the lower market rates. However, the higher median home values imply that the overall real estate market in the area is robust, potentially making it a mid-tier neighborhood rather than a premium sub-market.
In summary, ZIP 56028 appears to offer a balanced mix of opportunities and challenges for landlords and small-portfolio investors interested in Section 8 properties. The potential for higher rents due to Section 8 subsidies, coupled with a significant renter population, makes it an attractive target. At the same time, the higher home values suggest a competitive market, which could impact property acquisition costs and resale values.
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.