Section 8 Fair Market Rent (FMR) for ZIP 56187 - 2027

Location: Nobles County, MN | Metro: Jackson County, MN

Investment Score for ZIP 56187

F
Monthly Rent (2BR)
$1,090
Median Price (2BR)
$200,132
1% Rule
0.54%
Annual Yield
6.54%

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$760
1 Bedroom$830
2 Bedrooms$1,090
3 Bedrooms$1,450
4 Bedrooms$1,530
5 Bedrooms$1,775
6 Bedrooms$1,988
7 Bedrooms$2,147
8 Bedrooms$2,254

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 $1,090 $200,132 0.54% F
3BR $1,450 $259,593 0.56% F
4BR $1,530 $316,669 0.48% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
15,214
Median Household Income
$64,326
Housing Units
5,513
Renter Percentage
30.7%
Occupancy Rate
91.6%
Renter Occupied
1,552

30.7% of residents in ZIP code 56187 (Worthington, MN) are renters, indicating a significant portion of the population relies on rental housing. The $925 market rent, as reported by the Census ACS, reflects the average cost tenants pay for their living space. This figure is notably lower than the $1,070 Fair Market Rent (FMR) for the metro area in fiscal year 2026, suggesting a potential opportunity for landlords to increase rents without losing tenants to the broader market. The median home value stands at $241,119, providing insight into the overall property values in the area. For those considering Section 8 properties, it's crucial to note that the median income in Worthington is $64,326, which aligns well with the affordability of the FMR. Additionally, the 0.2% price-cut share indicates that very few properties are being discounted, further supporting the stability and demand in the rental market. Landlords and small-portfolio investors should also be aware that the lack of available data on days on market (DOM) could imply either a robust market where properties are quickly rented or a lack of comprehensive reporting mechanisms. Given these metrics, Worthington presents a stable rental market with a slight edge towards higher rental rates compared to the current market average, making it a favorable location for Section 8 investments.

Verdict: Section 8 properties in Worthington, MN are a solid investment choice given the stable rental market and favorable rent-to-income ratios.

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.