Location: Nobles County, MN | Metro: Murray County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,240 |
| 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 median income in ZIP code 56122 stands at $97,321, placing it within a moderate economic bracket. The market rate for rent, according to the Census ACS, is $747 per month. This figure suggests that a significant portion of households in this area could comfortably cover their housing costs without financial strain.
However, when comparing the market rate to the Fair Market Rent (FMR) standard set at $990 for the metro area in fiscal year 2026, a notable discrepancy emerges. This higher FMR indicates that voucher holders might find it challenging to secure housing within this ZIP code, given the elevated cost relative to the typical market rate.
In ZIP 56122, where 22.9% of the 660 residents are renters, the affordability gap between the market rate and the FMR presents a competitive landscape for landlords. Voucher holders seeking accommodation at $990 may face limited options, potentially driving them to areas with lower rates, thus reducing the pool of potential tenants.
For landlords considering their strategy, the takeaway is clear. While cash-paying tenants are likely to be plentiful due to the relatively low market rate compared to the median income, those who accept vouchers may struggle to find properties within their budget. Landlords should weigh the benefits of accepting vouchers—such as guaranteed payments—from the reduced likelihood of attracting tenants willing to pay up to $990 against a broader market that seems comfortable paying around $747.
To summarize, landlords in ZIP 56122 have an opportunity to cater to both cash-paying tenants and voucher holders, but they must be prepared for the reality that voucher holders might be less common due to the higher FMR compared to the local market rate. This scenario underscores the importance of understanding the local rental dynamics and the financial capabilities of different tenant groups.
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.