Section 8 Fair Market Rent (FMR) for ZIP 56158 - 2027

Location: Nobles County, MN | Metro: Rock County, MN HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$760
1 Bedroom	$780
2 Bedrooms	$1,010
3 Bedrooms	$1,410
4 Bedrooms	$1,500
5 Bedrooms	$1,740
6 Bedrooms	$1,949
7 Bedrooms	$2,105
8 Bedrooms	$2,210

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

322

Median Household Income

$53,462

Housing Units

151

Renter Percentage

19.7%

Occupancy Rate

94.0%

Renter Occupied

To determine if a landlord should buy in ZIP code 56158 for Section 8 purposes, follow this decision tree:

1) Does FMR $970 (metro FY 2026) clear debt service on a N/A property?
- Yes: If the Fair Market Rent (FMR) of $970 can cover the total debt service costs of acquiring a property in this area, then it makes financial sense to consider purchasing for Section 8. Proceed to the next question.
- No: If the FMR cannot cover the debt service costs, purchasing for Section 8 would not be financially viable. Do not proceed with buying in this ZIP code for Section 8 purposes.
2) Is market rent $715 (Census ACS) above, at, or below FMR?
- Above: If the market rent exceeds the FMR, the property may struggle to attract Section 8 tenants. The answer is no.
- At or Below: If the market rent is at or below the FMR, it aligns well with the Section 8 program's rent limits. Proceed to the next question.
3) Are 19.7% renters + N/A-day DOM enough demand?
- Yes: If the percentage of renters is sufficient and the days on market (DOM) indicate a healthy turnover rate, there is enough demand to support a Section 8 property. The answer is yes.
- No: If the percentage of renters is too low or the DOM suggests slow sales, the demand may not support a Section 8 property. The answer is no.
- It Depends: If the demand is marginal, the decision hinges on other factors such as the landlord's investment goals, willingness to wait for tenants, and the potential for rental increases. In this case, the answer is it depends.

The Fair Market Rent (FMR) of $970 must first be evaluated against the debt service costs of a property in ZIP 56158. If the FMR does not cover these costs, the purchase is not advisable. However, if it does, the next step is to compare the market rent of $715 to the FMR. If the market rent is above the FMR, the property will likely face challenges in attracting Section 8 tenants. Conversely, if the market rent is at or below the FMR, it aligns well with the program.

Finally, assess whether the 19.7% of renters combined with the days on market indicates sufficient demand. This analysis is crucial for ensuring that the property can maintain occupancy rates necessary for financial stability. Should the demand be adequate, the landlord should feel confident about purchasing for Section 8. If demand is insufficient, reconsider the investment. If the demand is borderline, the landlord's specific investment criteria will determine the viability of the purchase.

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.