Section 8 Fair Market Rent (FMR) for ZIP 56214 - 2027

Location: Yellow Medicine County, MN | Metro: Redwood 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	$1,520
5 Bedrooms	$1,763
6 Bedrooms	$1,975
7 Bedrooms	$2,133
8 Bedrooms	$2,240

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

648

Median Household Income

$90,694

Housing Units

313

Renter Percentage

20.9%

Occupancy Rate

80.8%

Renter Occupied

The economics of Section 8 housing in ZIP code 56214 are driven by the SAFMR (Small Area Fair Market Rent) which is set at $970 for a two-bedroom unit in fiscal year 2026. This amount is higher than the local market rent, which is recorded at $838 according to the Census ACS data.

A landlord might wonder how much they will actually receive when a tenant uses a Section 8 voucher. Here's a breakdown:

Tenant Portion: Tenants are required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,500 per month, the tenant would contribute $450 towards the rent.
Voucher Payment: The voucher covers the difference between the tenant’s contribution and the SAFMR. In this case, the voucher would cover $970 - $450 = $520.
Utility Allowances: Utility allowances vary but typically add a modest sum to the total reimbursement. For simplicity, let's assume an additional $150 for utilities, bringing the total voucher payment to $520 + $150 = $670.

The typical reimbursement gap or surplus can be calculated by comparing the total voucher payment ($670) plus the tenant's contribution ($450) against the local market rent ($838). In this scenario, the total amount received by the landlord from the voucher and tenant would be $670 + $450 = $1,120.

Given that the local market rent is $838, landlords in ZIP 56214 would see a surplus of $1,120 - $838 = $282 per month for a two-bedroom unit. This means that landlords could either charge less than the SAFMR and still cover costs, or they could potentially make a profit if they maintain the rent at the market level.

Note that the SAFMR is set specifically for this ZIP code, reflecting the unique cost of living here rather than applying uniformly across a broader metro or county 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.