Location: Lyon County, MN | Metro: Lyon County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
16.7% of the population in ZIP code 56157 are renters, indicating a modest demand for rental properties in the area. The Fair Market Rent (FMR) for the metro area as of fiscal year 2026 is set at $1,060, which serves as a benchmark for the maximum allowable rent for Section 8 participants. This figure is slightly below the average market rent of $1,120, based on recent Census ACS data, suggesting that landlords participating in the Section 8 program might see a slight decrease in their potential rental income compared to the open market.
$91,250 represents the median income of residents in the ZIP code, a key statistic for assessing the financial stability of potential tenants. However, it's important to note that the median home value in the area is $285,388, which could indicate a higher cost of living or property values that exceed typical incomes, potentially impacting the pool of eligible Section 8 applicants.
The lack of available data on days on market (DOM) and the percentage of homes that have had their prices cut suggests a stable housing market without significant fluctuations or overstocking of listings. This stability can be beneficial for landlords looking to maintain consistent occupancy rates and avoid prolonged vacancies.
In conclusion, for ZIP code 56157, the Section 8 program offers a viable option for landlords willing to accept a rent rate slightly below the market average of $1,120, with a guaranteed $1,060 per month. Given the median income of $91,250 and the modest renter share of 16.7%, the likelihood of finding financially stable tenants is reasonable. However, the higher median home value of $285,388 implies that the overall cost of living might be higher, which could affect the number of eligible applicants. For small-portfolio investors, Section 8 participation in 56157 can provide a steady, if not premium, income stream.
Verdict: Acceptable for Section 8 participation with caution regarding the number of eligible applicants.
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.