Section 8 Fair Market Rent (FMR) for ZIP 56128 - 2027

Location: Pipestone County, MN | Metro: Rock County, MN HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$770
1 Bedroom	$840
2 Bedrooms	$1,100
3 Bedrooms	$1,320
4 Bedrooms	$1,610
5 Bedrooms	$1,868
6 Bedrooms	$2,092
7 Bedrooms	$2,259
8 Bedrooms	$2,372

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,768

Median Household Income

$71,875

Housing Units

785

Renter Percentage

8.6%

Occupancy Rate

92.2%

Renter Occupied

The economics of Section 8 housing in ZIP code 56128 are governed by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2026 is $1,120. However, the local market rent, based on Census ACS data, is significantly lower at $736.

A landlord participating in the Section 8 program will receive payments from the voucher that cover a portion of the rent, but not the entire amount. The voucher payment is calculated based on the difference between the market rent and the SAFMR, plus any utility allowances and the tenant's portion of the rent.

To illustrate, let's break down the components:

Tenant Portion: Typically, tenants contribute 30% of their adjusted income towards rent. If a tenant's adjusted income is $2,000 per month, they would pay $600 towards rent.
Voucher Payment: The voucher will cover the remaining portion up to the SAFMR. In ZIP 56128, if the local market rent is $736, the voucher would pay the difference between the market rent and the SAFMR, which is $1,120 - $736 = $384, plus the tenant's portion of $600. Therefore, the total reimbursement to the landlord would be $984 ($600 tenant contribution + $384 voucher contribution).
Utility Allowances: These vary but generally add a small amount to the total reimbursement. For simplicity, assume an additional $100 for utilities, bringing the total reimbursement to $1,084.

This means that for a two-bedroom unit priced at the local market rate of $736, the landlord would receive a total of $1,084 when combining the tenant's contribution, the voucher payment, and utility allowances. This results in a surplus of $348 ($1,084 - $736) for the landlord.

In ZIP 56128, the typical reimbursement for a two-bedroom unit under the Section 8 program exceeds the local market rent, providing a surplus of $348 per month. This surplus can be beneficial for landlords looking to maintain rental income levels while participating in the program.

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.