Location: Nobles County, MN | Metro: Nobles County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56155, located in Nobles County, MN, reveals several key points for potential Section 8 real-estate investments.
The rent math does not favorably align. The Fair Market Rent (FMR) for the area, set at $970 for fiscal year 2026, exceeds the current market rent of $775 based on Census ACS data. This discrepancy suggests that landlords might struggle to cover costs and profit margins solely through Section 8 payments without supplementing with additional income sources.
Acquisition affordability remains unclear due to the lack of specific data on median home values, days on market (DOM), and the percentage of homes requiring price cuts. Without these metrics, it's challenging to assess the financial viability of purchasing properties in this ZIP code for Section 8 tenancy.
Tenant demand in ZIP 56155 is limited. With a total population of 411, only 6.5% are renters. This low percentage indicates a smaller pool of potential tenants, which could impact the ability to quickly fill vacancies or maintain a steady occupancy rate.
In conclusion, while ZIP 56155 offers an opportunity to serve a community in need, the mismatch between FMR and market rent, coupled with the uncertainty around property acquisition costs and a limited tenant demand, suggests that this area may not be the most profitable for landlords and small-portfolio investors seeking stable returns. Potential investors should proceed with caution and consider diversifying their investment strategies beyond this ZIP code.
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.