Location: Nobles County, MN | Metro: Nobles County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 56165 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,020 per month for fiscal year 2026. This figure is specifically tailored for this ZIP code, reflecting local housing conditions and costs.
To understand what a landlord receives from a Section 8 voucher, it's crucial to break down the components involved. The total rent for a two-bedroom unit is capped at $1,020, but this amount is split between the tenant and the government. Typically, the tenant is responsible for paying approximately 30% of their income towards rent, while the government covers the difference up to the SAFMR limit.
Utility allowances also factor into the equation. These allowances are additional funds provided to cover utilities such as electricity, water, and gas. However, the exact amount of these allowances can vary based on the specific needs of the tenant and the type of utilities required. For simplicity, let's assume an average utility allowance of $200 per month.
This means that out of the $1,020 SAFMR, if we subtract the utility allowance, the landlord would receive around $820 directly from the voucher program. The remaining $200 would be allocated to cover utilities. If the tenant's share of the rent is $300, then the total reimbursement to the landlord would be $1,120 ($820 from the voucher plus $300 from the tenant).
However, since the local market rent is not available, it's important to consider that the actual rent charged might be below or above the SAFMR depending on the landlord's pricing strategy and the demand in the area. If the market rent were higher than $1,020, the landlord would still only receive up to the SAFMR amount plus the tenant's contribution, leading to a potential surplus if the market rent is lower or a gap if it's higher.
In ZIP 56165, the typical scenario for a two-bedroom voucher reimbursement would result in a surplus for landlords who price their units below the SAFMR of $1,020. Conversely, those who charge above this rate will face a reimbursement gap, meaning they won't be fully compensated for the rent they collect.
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.