Location: Redwood County, MN | Metro: Cottonwood County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The analysis for ZIP Code 56152 in Lamberton, MN, reveals a significant gap between the Fair Market Rent (FMR) and the market rent. For a metro area like Lamberton, the FMR for FY 2026 is set at $970, while the Census ACS data shows a market rent of $788. This means there is a $182 difference, or approximately a 23.1% gap, between what the government deems a fair market rent and the actual market rate.
If the FMR exceeds the market rent, as it does here, this indicates a yield opportunity for landlords. Voucher tenants can be particularly attractive because they provide a guaranteed, stable source of income that is often higher than what the open market would offer. In Lamberton, the FMR allows landlords to charge $970, which is $182 above the market rent, translating to a higher yield on their investment properties.
The ZIP Code 56152 has a 17.9% rental rate, indicating that nearly one in five residents are renters. The median home value is $157,945, and the median income stands at $75,536. These figures suggest that the local economy supports both homeownership and renting, but the disparity between FMR and market rent highlights a unique opportunity for landlords to leverage the Section 8 program for better returns.
In summary, the gap between FMR and market rent in ZIP 56152 presents a clear yield advantage for landlords willing to accept Section 8 vouchers. This opportunity should be considered alongside the broader economic context of the area, including median income and home values.
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.