Location: Nobles County, MN | Metro: Nobles County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The gap between the FMR and market rent suggests that properties participating in the Section 8 program can achieve higher yields compared to those rented at open-market rates. Given the median home value in the area is $244,222 and the median income is $77,875, landlords can benefit from the guaranteed payments through housing vouchers, which are often closer to the FMR than the actual market rent.
With only 12.1% of the population being renters, landlords who offer Section 8 units have a competitive advantage. The voucher system ensures a steady stream of income, even if the market rent is slightly lower. This makes it a strategic investment opportunity for landlords and small-portfolio investors looking to capitalize on the discrepancy between FMR and market rent.
However, it's important to note that while the FMR provides a higher rental rate, landlords must still adhere to the quality standards set by the Housing Choice Voucher Program. Any property receiving Section 8 tenants must pass regular inspections, ensuring it meets the minimum requirements for safety, health, and sanitation.
In conclusion, the slight gap in favor of FMR makes ZIP 56110 an attractive location for Section 8 investments. Landlords can leverage this to increase their rental yields while providing affordable housing options for low-income families.
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.