Section 8 Fair Market Rent (FMR) for ZIP 56180 - 2027

Location: Redwood County, MN | Metro: Cottonwood County, MN

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$710
1 Bedroom	$780
2 Bedrooms	$1,010
3 Bedrooms	$1,390
4 Bedrooms	$1,510
5 Bedrooms	$1,752
6 Bedrooms	$1,962
7 Bedrooms	$2,119
8 Bedrooms	$2,225

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,287

Median Household Income

$67,689

Housing Units

585

Renter Percentage

28.6%

Occupancy Rate

89.6%

Renter Occupied

150

The ZIP code 56180 is located in a suburban setting within the broader metro area, characterized by its stable housing market and a mix of rental and homeownership opportunities. This region offers investors a balanced approach to real estate investment, with both rental properties and homes presenting potential for steady returns.

Fair Market Rent: The Fair Market Rent (FMR) for the metro area, including ZIP 56180, is set at $970 for fiscal year 2026, indicating a solid demand for affordable housing options.
Market Rent: According to the Census ACS, the average market rent in ZIP 56180 is $629, suggesting that there is room for price increases to align with the FMR, thus potentially increasing rental income.
Median Home Value: The median home value stands at $152,777, which is below the national average, making it an attractive entry point for investors looking to acquire property at a lower cost.
Renter Share: With 28.6% of residents being renters, there is a significant portion of the population that relies on the rental market, providing a consistent tenant pool.
Median Income: The median income in the area is $67,689, which supports the ability of residents to afford the current rents and potentially higher rates closer to the FMR.

The data points indicate that ZIP 56180 presents a favorable environment for real estate investments, particularly in rental properties. Given the gap between the current market rent and the FMR, there is potential for rental price adjustments that can lead to increased revenue without compromising occupancy rates. The relatively low median home value also suggests that there is room for appreciation, especially considering the median income level that supports current rental prices. For landlords and small-portfolio investors, focusing on quality rental units could yield positive financial outcomes due to the stable demand for housing in this area.

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.