Location: Waseca County, MN | Metro: Le Sueur County, MN HUD Metro FMR Area
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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $302,919 | 0.35% | F |
| 3BR | $1,420 | $332,231 | 0.43% | F |
| 4BR | $1,800 | $373,282 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 56096, located in Waterville, MN, has a population of 2,953 residents. With 18.1% of the population being renters, it indicates that this area is primarily homeowner-dominated rather than renter-heavy. The median household income stands at $87,679, which provides insight into the economic status of the area.
The typical market rent in this area is $886 per month. This represents approximately 12.4% of the median household income, calculated as follows: ($886 / $87,679) * 100 = 12.4%. Given that the Fair Market Rent (FMR) for FY 2024 is $1,050, the current market rent is below the FMR, suggesting that rents are relatively affordable compared to the broader regional standard.
In terms of Section 8 voucher demand, the scarcity of renters in Waterville means that the number of individuals seeking housing assistance through Section 8 vouchers is likely limited. The low percentage of renters and high median income indicate that most residents can afford market rates without government assistance.
A landlord in ZIP 56096 should expect tenants who are financially stable and capable of paying rent without relying on housing vouchers. While some tenants might still use vouchers, the overall demand for such assistance is expected to be lower due to the strong local economy and the higher proportion of homeowners. Landlords will find themselves in an area where rental properties are not the primary housing choice, but they can still attract reliable tenants willing to pay the market rate of $886 per month.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.