Section 8 Fair Market Rent (FMR) for ZIP 56171 - 2027

Location: Martin County, MN | Metro: Martin County, MN

Investment Score for ZIP 56171

Monthly Rent (2BR)

$1,100

Median Price (2BR)

$126,964

1% Rule

0.87%

Annual Yield

10.4%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$770
1 Bedroom	$920
2 Bedrooms	$1,100
3 Bedrooms	$1,440
4 Bedrooms	$1,450
5 Bedrooms	$1,682
6 Bedrooms	$1,884
7 Bedrooms	$2,035
8 Bedrooms	$2,137

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,100	$126,964	0.87%	C
3BR	$1,440	$193,738	0.74%	D
4BR	$1,450	$278,236	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,632

Median Household Income

$72,554

Housing Units

794

Renter Percentage

16.4%

Occupancy Rate

85.3%

Renter Occupied

111

Sherburn, MN, located in the heart of Minnesota's rural landscape, offers a stable and predictable rental market for landlords and small-portfolio investors. The town's economy is primarily driven by agriculture and small-scale manufacturing, providing a solid foundation for property investments.

The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $1,070.
The actual market rent for a similar unit, based on Census ACS data, stands at $743, indicating a significant gap between the FMR and the current market rates.
The median home value in Sherburn is $231,693, which reflects the overall affordability of the housing market.
Renters make up 16.4% of the local population, suggesting that the majority of residents prefer homeownership over renting.
The median income in the area is $72,554, providing a reliable income level for potential tenants.
The average number of days on the market (DOM) for rental properties is not available, which could indicate either a well-balanced market or a lack of comprehensive data.

Analyzing these points, it becomes evident that while the rental market in Sherburn is somewhat competitive, there is still room for growth due to the discrepancy between FMR and actual market rents. The relatively low median home value and median income suggest that the town caters to a moderate-income demographic, making it suitable for affordable housing investments. However, the high percentage of homeowners implies a need to focus on attracting and retaining tenants through competitive pricing and amenities. For investors looking to enter the market, a strategic approach focusing on value and location will be key to success.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.