Location: Yellow Medicine County, MN | Metro: Lac qui Parle County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
A household in ZIP code 56220, with a median income of $61,414, faces significant challenges in affording the market rate rent of $604 per month. This figure represents the average cost for renting a property based on recent Census American Community Survey (ACS) data. However, when compared to the Fair Market Rent (FMR) set at $970 for the metro area in fiscal year 2026, it becomes evident that the actual cost of living is higher than what many residents might be able to bear.
The disparity between the market rate and the FMR indicates an affordability gap for renters. With only 16.0% of the population being renters and a total population of 2,617, landlords must consider the limited pool of potential tenants who can afford higher rents. This scenario suggests that competition among landlords could be intense, especially for those willing to accept lower rents or offer incentives to attract tenants.
For landlords considering their strategy regarding voucher acceptance versus cash-paying tenants, the key takeaway is clear. Accepting vouchers that cover up to $970 per month can open doors to a larger segment of the rental market, particularly those who rely on financial assistance. While voucher payments ensure consistent income, they come with regulatory requirements and may involve additional administrative work. In contrast, cash-paying tenants offer flexibility but are fewer in number given the current economic conditions and rent levels in ZIP 56220.
In summary, landlords in ZIP 56220 should weigh the benefits of accepting vouchers against the convenience of having cash-paying tenants. Given the affordability gap and the relatively low percentage of renters, embracing voucher programs could provide a strategic advantage in securing long-term, stable tenancy.
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.