Location: Watonwan County, MN | Metro: Jackson County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 56160, located in Watonwan County, MN metro, reveals several key points regarding the feasibility and profitability of investing in this area. The HUD Fair Market Rent (FMR) for the region is set at $980 for fiscal year 2026. However, the lack of current market rent data for the area makes it challenging to directly compare the two figures.
Despite the missing market rent data, we can infer that voucher tenants will likely cashflow at the FMR rate of $980, given the typical cost structures of rental properties in rural areas. This suggests that landlords and small-portfolio investors can expect stable income without significant financial strain when relying on Section 8 vouchers to cover their rental costs.
The median home value in the area is also not available, which complicates the derivation of an accurate rent-to-price ratio. Nevertheless, this absence does not significantly impact the primary focus of our analysis, which is the viability of Section 8 investments. Since the FMR is designed to reflect the average rents in the area, it serves as a reliable benchmark for evaluating the potential success of such investments.
With no available data on the number of days homes stay on the market (DOM) or the percentage of price cuts (price-cut share), we cannot provide a detailed comparison between renting and buying dynamics. However, the absence of these metrics does not detract from the core analysis. In a scenario where market rent is not significantly higher than the FMR, voucher tenants would typically cashflow or marginally cashflow, depending on the specific unit's expenses.
The strongest angle for investors in ZIP 56160 is likely stability. Given the reliance on government-backed vouchers, the risk of vacancy and default is minimized, ensuring a steady and predictable stream of income. While appreciation and cashflow are important considerations, the stability provided by Section 8 investments is particularly valuable in a region with limited data on fluctuating market conditions.
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.