Location: Redwood County, MN | Metro: Brown 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 | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $142,050 | 0.71% | D |
| 3BR | $1,220 | $180,854 | 0.67% | D |
| 4BR | $1,630 | $223,972 | 0.73% | D |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 56087, encompassing Springfield, MN, Brown County, and Redwood County, highlights a favorable environment for investors. The HUD Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. This figure is notably higher than the market rent of $813, as reported by the Census ACS data.
Voucher tenants in this region will generally cashflow at the HUD FMR rate, meaning that landlords can expect positive cash flow when renting to tenants with vouchers. The gap between the FMR and the market rent suggests that landlords can charge closer to the HUD rate without significantly deterring tenants who receive assistance through the Section 8 program.
The median home value in the area stands at $206,959. Using the HUD FMR of $970, we can calculate a rent-to-price ratio of approximately 0.56%. This indicates that rental income represents a relatively small portion of the property's total value, which is typical for suburban and rural markets but may be less attractive compared to urban areas where this ratio is often higher.
Note that the median Days on Market (DOM) and the percentage of properties that experience price cuts are not available. However, given the favorable FMR-to-market rent comparison, it is likely that the rental market remains stable and competitive, supporting steady demand for rental properties.
The strongest investor angle in this market is cashflow. Given the positive difference between the HUD FMR and the market rent, landlords can leverage this gap to ensure a consistent and reliable source of income from voucher-assisted tenants.
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.