Location: Kandiyohi County, MN | Metro: Kandiyohi County, MN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $195,181 | 0.52% | F |
| 3BR | $1,410 | $227,356 | 0.62% | D |
| 4BR | $1,700 | $293,715 | 0.58% | F |
| 5BR | $1,972 | $359,628 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 56201, located in Willmar, Minnesota, is characterized by a significant rental population, with 37.1% of residents being renters. This indicates a robust tenant pool that could benefit from Section 8 housing vouchers. The median household income stands at $68,804, providing a benchmark against which rental costs can be evaluated.
Average market rent in this area is $910 per month, which represents approximately 13.2% of the median household income. This percentage suggests that while rent is a notable expense, it remains within a reasonable range relative to income levels, making it feasible for many households to afford housing without needing extensive assistance. However, the presence of Section 8 vouchers could still play a critical role for those who struggle to meet this cost.
Comparing the market rent to the Fair Market Rent (FMR), which is set at $970 for the fiscal year 2026 in the metro area, reveals that the market rent in Willmar is slightly below the FMR. This implies that landlords accepting Section 8 vouchers may find themselves in a favorable position, as their rents align well with government-set standards, potentially attracting tenants who qualify for the higher voucher amounts.
The expected tenant profile in this ZIP code would be individuals or families who rely on Section 8 vouchers to subsidize their housing expenses. Given the income levels and the cost of rent, these tenants would likely be working-class individuals, possibly including single parents, elderly residents, or those with disabilities who require financial assistance to secure adequate housing. Landlords should prepare for a mix of long-term and short-term tenancies, as voucher holders often have fluctuating financial situations that can impact their ability to maintain consistent rental payments.
In summary, ZIP 56201 presents a viable opportunity for landlords interested in participating in the Section 8 program due to its substantial rental population and the alignment of market rents with the FMR. The tenant base will predominantly consist of those who need financial support to cover living expenses, making it essential for landlords to understand the nuances of working with subsidized housing programs.
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.