Location: Nobles County, MN | Metro: Rock County, MN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The ZIP code 56129 stands out due to its unique demographic and economic characteristics. With only 761 residents, it has a very low population density. Among these residents, 16.6% are renters, indicating that the majority of the residents own their homes. The median income for the area is $62,614, which suggests a moderate level of financial stability among the inhabitants.
Despite the lack of data on the median home value, the ZIP code's rental market offers some insights into the local real estate landscape. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, while the current market rent, according to Census ACS data, is $625. This significant gap between the FMR and the actual market rent presents an opportunity for landlords participating in the Section 8 program. Landlords can potentially benefit from higher rental rates compared to the current market average, thereby improving their investment returns.
The voucher economics in ZIP 56129 favor landlords who can offer housing units at or below the FMR. By accepting Section 8 vouchers, landlords can tap into a government-subsidized rental market, ensuring a steady stream of income. However, the difference between the FMR and the market rent also implies that there might be limited demand for properties priced at the higher FMR rate, as the local economy supports a lower rental price point.
The data signature of ZIP 56129 reads as stable, with a consistent median income and a relatively low percentage of renters. The population size is also stable, suggesting little to no influx or outflow of new residents. While the lack of median home value data is a notable absence, the overall picture indicates a community that is financially secure and has a strong preference for homeownership over renting. For small-portfolio investors looking to enter the rental market, the Section 8 program could provide a viable option, especially if they can offer units that meet the FMR criteria without exceeding the typical market rent.
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.