Location: Waseca County, MN | Metro: Mankato, MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,320 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
U.S. Census Bureau data (2024)
In ZIP code 56078, the economics of Section 8 housing can be clearly defined using the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1210 for the fiscal year 2024. This figure is specific to this ZIP code, reflecting localized rental costs. The local market rent, as reported by the Census ACS, stands at $1,607 for a similar unit. Here's a breakdown of how a voucher payment works for landlords.
The SAFMR of $1210 represents the maximum amount that the Housing Choice Voucher program will pay towards rent for a two-bedroom apartment in ZIP 56078. However, the actual reimbursement to landlords depends on the tenant's portion of the rent and any utility allowances.
Tenants are generally responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,600 (a common benchmark), the tenant would contribute approximately $480 towards the monthly rent. This leaves the remaining amount to be covered by the voucher.
The voucher would then cover the difference between the tenant's contribution and the SAFMR. In this case, the voucher would reimburse the landlord $730 ($1210 - $480). It's important to note that this calculation assumes the SAFMR is higher than the tenant's portion of the rent. If the tenant's portion were higher, the voucher would not cover the entire SAFMR but only the difference between the tenant's portion and the actual rent.
Utility allowances vary but are typically around $200-$300 per month. These allowances are paid directly to the tenant to cover utilities, so they do not increase the total reimbursement to the landlord. Instead, they ensure that tenants have funds available to cover their utility expenses without dipping into their rent payments.
Given these specifics, landlords in ZIP 56078 would face a reimbursement gap if the market rent exceeds the SAFMR. With the local market rent at $1,607 and the voucher covering up to $1210, the landlord would need to accept a reimbursement of $730 plus the tenant's $480 contribution, totaling $1210. This results in a shortfall of $397 per month ($1,607 - $1210).
To summarize, the typical reimbursement gap for a two-bedroom apartment in ZIP 56078 under the Section 8 program is a deficit of $397, assuming the local market rent of $1,607 and the SAFMR of $1210. Landlords must carefully consider this financial gap when deciding whether to participate in the program.
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.