Location: Watonwan County, MN | Metro: Watonwan County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
ZIP code 56056, located within Watonwan County, MN, stands out in several ways when compared to typical ZIP codes in the county. The Fair Market Rent (FMR) for 56056 is set at $990 for the fiscal year 2026, which is a key figure for understanding the rental landscape in this area.
The absence of market rent and home value data for ZIP 56056 suggests that it may be less developed or have fewer properties listed compared to other areas within Watonwan County. This lack of data can sometimes indicate a niche market or a smaller population density, which could make it a unique investment opportunity.
A critical point to note is the 0.0% renter share in ZIP 56056. This means that there are no reported renters in this ZIP code, which contrasts sharply with the typical scenario where many ZIP codes have a mix of homeowners and renters. Given the FMR of $990, it's reasonable to infer that this ZIP code might lean towards being a value pocket rather than a premium sub-market. In a value pocket, the rents are generally lower, and the area is considered more affordable compared to other parts of the metro.
The high FMR without corresponding market rent or home value data points to a potential anomaly or a lack of comprehensive reporting. However, the zero renter share clearly indicates that this area is predominantly owner-occupied, which can mean lower competition for tenants but also a smaller pool of potential Section 8 clients.
In conclusion, ZIP 56056 appears to be a value pocket within Watonwan County, MN, due to its relatively low FMR and the complete absence of renters. While this makes it less attractive for Section 8 investors seeking a higher concentration of renters, it could still present opportunities for those looking to invest in owner-occupied properties or develop rental units in an underserved area.
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.