Location: Steele County, MN | Metro: Freeborn County, MN
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 | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,400 | $228,447 | 0.61% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 56035 is set at $970 for the fiscal year 2026. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program, not the amount tenants will pay for rent. Instead, it's the maximum amount the housing authority will reimburse landlords for renting out a unit.
In comparison, the average market rent for ZIP 56035 is currently $670, according to recent Census Bureau data. This indicates that the Section 8 payment standard is significantly higher than the typical local rent, potentially offering landlords a better financial return when compared to non-subsidized rentals.
With a renter share of 20.9%, there is a steady demand for rental properties in this area. This means that about one-fifth of the households in ZIP 56035 are renters, creating a consistent pool of potential tenants who could benefit from Section 8 vouchers.
The median home value in ZIP 56035 is around $217,821. This can be considered when evaluating the acquisition cost of a property you might want to add to your portfolio. While the initial investment may seem high, the long-term benefits of having a Section 8 rental can outweigh the costs due to the guaranteed income from the housing authority.
Before deciding to participate in the Section 8 program with a rental in ZIP 56035, verify that your property meets all the necessary inspection requirements. The housing authority conducts thorough inspections to ensure units are safe and habitable, so confirming compliance with these standards beforehand will prevent delays and ensure you can start receiving payments promptly.
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.