Location: Nobles County, MN | Metro: Murray County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 56185 in Nobles County, MN, reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $970 per month for FY 2026, which is notably higher than the market rent of $814 based on Census ACS data. This discrepancy indicates that voucher tenants will generally cashflow at the FMR rate, providing a solid financial cushion for property owners.
To derive the rent-to-price ratio, it's important to note that the median home value in ZIP 56185 is currently not available. However, given the higher FMR compared to the market rent, we can infer that the rent-to-price ratio would likely be beneficial for investors, especially those focusing on rental income over long-term capital appreciation.
The dynamics of days on market (DOM) and the percentage of homes needing price cuts are also not available. Nonetheless, these metrics are typically less critical when analyzing rental markets, particularly for Section 8 properties, where the focus is on steady, government-backed rental income rather than fluctuating home values.
In conclusion, the strongest investor angle in ZIP 56185 is cashflow. With voucher tenants paying above the market rent, landlords can expect consistent, positive cashflow without the need for premium units. This makes the area an attractive investment opportunity for those seeking reliable returns through rental income.
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.