Location: Waseca County, MN | Metro: Faribault 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 |
|---|---|---|---|---|
| 2BR | $1,030 | $218,808 | 0.47% | F |
| 3BR | $1,400 | $253,161 | 0.55% | F |
| 4BR | $1,640 | $304,441 | 0.54% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $970 for the metro area in fiscal year 2026, landlords in ZIP 56072, New Richland, MN, have a clear benchmark for pricing their rental units. The Census ACS reports a market rent of $779, indicating that properties priced at the FMR could attract tenants seeking Section 8 housing assistance. The median home value stands at $269,135, which suggests a stable housing market where investment properties can be acquired at reasonable prices. With a 12.9% share of renters in the area, there is a significant but not overwhelming demand for rental properties, allowing landlords to maintain competitive rates without overpricing. The median income of $80,417 provides insight into the financial stability of potential tenants, as it indicates a middle-class community capable of supporting higher rents when necessary. While the days on market (DOM) and the percentage of price-cut share are not available, the existing data points towards a manageable market for both large and small-scale landlords. Given the relatively low market rent compared to the FMR, properties in ZIP 56072 are well-positioned to benefit from Section 8 programs, attracting tenants who might otherwise struggle to find affordable housing. The stable median home value and median income further support the viability of these investments, ensuring long-term profitability. For small-portfolio investors, the opportunity to diversify their holdings with properties in this ZIP code presents a solid strategy for growth. In conclusion, the data supports a positive outlook for Section 8 participation in ZIP 56072, making it a favorable option for landlords looking to expand their portfolio.
Verdict: ZIP 56072 is a good fit for Section 8 landlords and small-portfolio investors, given the alignment between market rents and FMRs, alongside stable median income levels.
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.