Location: Jackson County, MN | Metro: Cottonwood County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The median home value in ZIP 56118 is $251,600, which is higher than the average market value of $933 per square foot and the Fair Market Rent (FMR) of $1,010 for the metro area in fiscal year 2026. This makes it an attractive location for investors looking to balance their portfolio with properties that have a higher overall value.
The median income in this ZIP code is $91,250, indicating a relatively stable economic environment where tenants are more likely to meet the income requirements for Section 8 eligibility. With a 4.2% renter share, there is a moderate demand for rental properties, suggesting that while not every property will be rented out immediately, there is still a viable market for Section 8 tenants.
Although the data does not provide specific percentages for price-cut shares or days on market (DOM), the median home value being significantly higher than the FMR suggests that properties here may hold their value well over time. This stability can help protect against losses due to depreciation, making it a safer bet for long-term investment strategies.
A key factor in choosing ZIP 56118 as a diversifier is the combination of higher median home values and moderate rental demand. These elements contribute to a balanced approach where investors can leverage the financial security offered by higher-value properties while still benefiting from the steady income provided by Section 8 tenants.
To summarize, ZIP 56118 should be included in a Section 8 portfolio strategy as a diversifier. Its higher median home value and stable median income offer a mix of safety and potential for long-term appreciation, making it a solid choice for landlords and small-portfolio investors seeking to broaden their investment base without taking on excessive risk.
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.