Location: Yellow Medicine County, MN | Metro: Lincoln County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 56142, located in Yellow Medicine County, MN metro, reveals several key points regarding the financial viability of voucher tenants in this area.
The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for the Yellow Medicine County, MN metro area, for fiscal year 2026, is $980. In contrast, the market rent, as reported by the Census Bureau's American Community Survey (ACS), stands at $658. This discrepancy indicates that voucher tenants can generally cashflow at FMR levels, suggesting a positive financial outlook for landlords participating in the Section 8 program.
To further analyze the investment potential, it is important to consider the rent-to-price ratio derived from the median home value. However, the median home value for ZIP 56142 is currently listed as N/A, which means we cannot accurately calculate the rent-to-price ratio. Despite this limitation, the lower market rent compared to the FMR still supports the idea that voucher tenants can contribute positively to a landlord's cash flow.
The median days on market (DOM) and the percentage of homes that required price cuts are also N/A for this ZIP code. While these figures would typically help understand the dynamics between renting and buying, their absence does not significantly impact the primary conclusion that the FMR exceeds the current market rent, allowing for better cash flow when renting to voucher tenants.
The strongest angle for investors in ZIP 56142 remains cash flow, given the favorable comparison between the HUD FMR and the local market rent. This makes it an attractive area for those looking to generate consistent rental income through the Section 8 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.