Location: Watonwan County, MN | Metro: Mankato, MN MSA
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 | $880 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $127,965 | 0.97% | C |
| 3BR | $1,610 | $188,808 | 0.85% | C |
| 4BR | $1,730 | $230,664 | 0.75% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 56088, Truman, MN, stands at $71,354. The market rate for rent, according to Census ACS data, is $1,039 per month. This places a significant burden on households, especially when considering that a common rule of thumb is that rent should not exceed 30% of gross income. At $1,039, rent would consume approximately 45% of the median income, which is well above the recommended threshold.
Comparatively, the Fair Market Rent (FMR) payment standard for Housing Choice Vouchers in ZIP 56088 for fiscal year 2024 is set at $960 per month. This amount represents a more affordable option for renters, consuming around 41% of the median income. While still high, it is closer to the ideal 30% guideline and provides some relief to residents.
In Truman, 30.4% of the population are renters, totaling approximately 631 individuals out of the 2,071 population. Given the affordability gap between the market rate ($1,039) and the voucher standard ($960), there is a notable incentive for renters to seek properties that accept vouchers. Landlords who exclusively target cash-paying tenants may find themselves competing against those willing to accept vouchers, which can attract a larger pool of potential tenants.
The takeaway for landlords is clear: accepting Housing Choice Vouchers can be a strategic move to tap into a segment of the market that might otherwise struggle to pay the higher market rates. By aligning with the voucher program, landlords ensure a steady stream of income while potentially reducing vacancy rates. However, they must also weigh the administrative requirements and payment timelines associated with vouchers against the benefits of attracting a reliable tenant base.
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.