Location: Waseca County, MN | Metro: Rice County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
U.S. Census Bureau data (2024)
ZIP 56093, located in Waseca, MN, fits well into a Section 8 portfolio strategy as a cash-flow anchor. The Federal Market Rent (FMR) for the Waseca County, MN metro area in fiscal year 2026 is set at $1,060 for a one-bedroom unit. This figure stands above the local market rent of $906, indicating a positive spread that benefits landlords participating in the Section 8 program.
The median home value in ZIP 56093 is $240,350. For landlords with properties in this area, the guaranteed rental income from Section 8 can provide a stable and predictable cash flow, especially when compared to the lower market rents. The FMR provides a safety net, ensuring that landlords receive a higher rate than what they might secure on the open market, thus anchoring their cash flow expectations.
While the ZIP code has a modest 0.2% price-cut share and an N/A-day days on market (DOM), these factors do not significantly impact its suitability as a cash-flow anchor. The primary focus should be on the consistent rental income provided by the Section 8 program, which outweighs minor fluctuations in property pricing.
The median income of $73,038 suggests that the area is economically stable, with residents capable of contributing their portion of the rent. However, the 22.5% renter share indicates that while there is a significant number of renters, the majority of households are likely homeowners. This makes ZIP 56093 less suitable as a diversifier, since diversification typically seeks areas with a high percentage of renters to balance out the risks associated with owning investment properties.
In conclusion, ZIP 56093 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to the favorable spread between the FMR and market rent. Landlords can expect steady and reliable income from the program, making it a solid choice for those looking to stabilize their investment property cash flows.
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.