Location: Murray County, MN | Metro: Murray County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56123 reveals critical insights for landlords and small-portfolio investors considering investment in this area.
The rent math does not work favorably for Section 8 participants. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,120. However, the current market rent, as per the Census ACS, stands at $950. This means that landlords would need to accept a lower rent payment from Section 8 tenants compared to what the market offers, reducing potential profitability.
Regarding acquisition affordability, the data shows that the median home value in ZIP 56123 is not available. Similarly, the days on market (DOM) and the percentage of homes requiring price cuts are also unavailable. This lack of data makes it difficult to assess the overall cost-effectiveness of acquiring properties in this area.
Tenant demand in ZIP 56123 is modest. With a total population of 420, only 6.7% are renters. This indicates a limited pool of potential Section 8 tenants, which could affect occupancy rates and the ability to fill vacancies quickly.
In summary, while the rental income from Section 8 might be stable, the lower rate compared to market rents reduces attractiveness. The unavailability of key metrics on property acquisition costs introduces uncertainty. Lastly, the small number of renters suggests that finding suitable tenants may be challenging. Overall, ZIP 56123 presents a less favorable environment for Section 8 investments due to these factors.
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.