Location: Cottonwood County, MN | Metro: Cottonwood County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 56145 is centered around the gap between the Fair Market Rent (FMR) of $970 and the market rent of $700 as reported by the Census ACS for fiscal year 2026. This represents a difference of $270, or approximately 38%, where the FMR exceeds the market rent.
In this context, the FMR being higher than the market rent makes ZIP 56145 a favorable location for landlords who accept Section 8 vouchers. Voucher tenants will cover the full market rent of $700, thus ensuring the property is rented at its true market value. Additionally, the remaining $270 can be seen as a subsidy to the landlord, effectively increasing the rental yield.
The ZIP code has 11.4% of its population renting homes, with a median income of $58,750. This indicates a modest economic environment where many residents might rely on housing assistance programs like Section 8 to afford decent living conditions.
Landlords should be aware that while accepting Section 8 tenants can provide a stable and predictable income stream, it also comes with administrative burdens and potential delays in rent collection. However, given the gap between FMR and market rent, the financial benefits outweigh these challenges.
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.