Location: Martin County, MN | Metro: Martin 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 | $720 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $142,649 | 0.94% | C |
U.S. Census Bureau data (2024)
The median income in ZIP code 56121 stands at $49,042, indicating a household's financial capacity. The market rate for rent is $1,290, which poses a significant challenge for the average resident given their income level. In contrast, the Fair Market Rent (FMR) set by HUD for the metro area in fiscal year 2026 is $1,070. This difference highlights a notable affordability gap for renters.
To put it into perspective, a household earning the median income would spend approximately 30% of their monthly earnings on the market rate rent of $1,290. However, when considering the FMR of $1,070, the rent burden decreases to around 25% of monthly income. This discrepancy means that many residents may find the market rate unaffordable without assistance.
With 23.4% of the 590 population being renters, the competition among landlords for tenants is moderate. However, the affordability gap suggests that landlords who accept Section 8 vouchers may have an advantage in securing long-term, stable tenants. Voucher holders are guaranteed a portion of their rent through government subsidies, reducing the risk of non-payment.
For landlords deciding between voucher vs. cash-pay strategies, the takeaway is clear: accepting vouchers can be a viable option in ZIP 56121. While the market rate of $1,290 might attract some cash-paying tenants, the reality of the affordability gap means that voucher holders represent a reliable tenant pool. Landlords should weigh the benefits of guaranteed payments against any perceived drawbacks, such as administrative requirements or the potential for slower rent increases.
In summary, the median income and market rent rates in ZIP 56121 indicate a challenging environment for renters. Accepting vouchers at the FMR of $1,070 can provide landlords with a steady stream of tenants, mitigating the risks associated with renting in an area where many households struggle to meet the higher market rates.
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.