Location: Murray County, MN | Metro: Cottonwood County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 56183 in metro FY 2026 is set at $970. This figure represents the payment standard for Section 8 vouchers in the area, meaning that if you participate in the program, you will receive this amount from the housing authority to cover the rent for your property. However, it's important to note that this does not necessarily mean your tenants will pay $970; rather, they typically contribute 30% to 40% of their income toward rent.
In contrast, the average rent in ZIP 56183, based on Census American Community Survey (ACS) data, is $620. This suggests that the FMR is significantly higher than the typical market rate, which can be advantageous for landlords participating in the Section 8 program. The difference between these two figures—$350—indicates a potential increase in rental income if you choose to accept Section 8 tenants.
The 30.4% renter share in ZIP 56183 indicates a substantial portion of the population who are likely seeking rental properties, including those eligible for Section 8 assistance. This demand can be beneficial for landlords looking to fill vacancies and maintain steady occupancy rates.
When considering the acquisition of a new rental property in this ZIP code, the median home value stands at $152,521. This provides a benchmark for the cost of purchasing a property suitable for Section 8 tenants. Given the FMR and the potential for consistent rental income, this could represent a good investment opportunity.
Before deciding to take on a Section 8 rental, one crucial step is to verify that your property meets the minimum housing quality standards known as Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for tenants. Failure to meet these criteria can result in disqualification from the program, so it's essential to check compliance to avoid any issues.
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.