Location: Yellow Medicine County, MN | Metro: Lac qui Parle County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The rent math in ZIP 56218 does not work in favor of landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,130, while the actual market rent based on Census ACS data is only $545. This discrepancy means that landlords would have to significantly lower their rental rates to attract tenants eligible for Section 8, reducing potential income.
Regarding acquisition affordability, the data presents a challenge. The median home value is listed as N/A, indicating limited available data or a lack of recent transactions. Additionally, the days on market (DOM) and the percentage of homes needing price cuts are also not available. These missing figures suggest that the housing market in ZIP 56218 might be inactive or less liquid, making it difficult to assess the ease of acquiring properties at affordable prices.
Tenant demand is low in ZIP 56218. With a total population of 435, only 4.7% are renters, which translates to approximately 20 individuals who might be seeking rental properties. This small number of potential tenants indicates a thin market for rentals, especially for those specifically targeting Section 8 tenants.
In summary, ZIP 56218 presents unfavorable conditions for landlords and small-portfolio investors interested in Section 8 properties. The rent math is skewed against profitability due to the significant gap between FMR and market rents. Acquisition affordability cannot be assessed due to insufficient data, and tenant demand is minimal given the small population and low percentage of renters. These factors collectively suggest that investing in this ZIP code is not advisable for those looking to generate a reliable rental income through Section 8.
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.