Location: Waseca County, MN | Metro: Faribault 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 | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $130,826 | 0.77% | D |
| 3BR | $1,390 | $180,506 | 0.77% | D |
| 4BR | $1,410 | $241,054 | 0.58% | F |
U.S. Census Bureau data (2024)
ZIP code 56097, located within Waseca County, MN, presents an interesting snapshot when compared against typical metrics for the broader county area. The Fair Market Rent (FMR) for the metro FY 2026 is set at $970. This figure represents the benchmark rent price established by HUD for the area, which is crucial for landlords participating in the Section 8 program.
The market rent for ZIP 56097 stands at $713, indicating that it falls below the HUD-set FMR. This suggests that landlords could potentially attract tenants who are eligible for Section 8 subsidies, as the lower market rent means the difference between the market rent and the FMR can be covered by the subsidy. However, it also implies that rental income might be lower than the maximum allowed under the program, which could affect profitability.
The median home value in ZIP 56097 is $182,217, which is notably lower than what might be expected in a more urbanized part of the county. This lower home value could be indicative of a more affordable housing market, appealing to first-time buyers and those looking for more budget-friendly options.
With a renter share of 20.0%, ZIP 56097 has a significant portion of its residents renting rather than owning their homes. This percentage aligns with the trend observed in many suburban areas where homeownership is still common but renting is also a viable option for a segment of the population.
When considering the characteristics of ZIP 56097, it appears to be a value pocket within the Waseca County metro. The below-average market rent and home value suggest that it offers cost-effective opportunities for both landlords and tenants. The high renter share relative to the lower home value points towards a potential sweet spot for Section 8 participation, as the discrepancy between rental costs and home values can make it attractive for subsidized tenants.
In conclusion, ZIP 56097 is positioned as a value pocket, offering affordable living conditions and a decent opportunity for landlords interested in Section 8 tenants. The lower market rent and home values contrast with the higher HUD-set FMR, creating a scenario where subsidized rents could cover the gap, making it a favorable location for those seeking to participate in the program.
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.