Location: Kandiyohi County, MN | Metro: Chippewa County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 56222 are governed by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,250 per month for fiscal year 2026. This SAFMR figure represents the maximum amount that the Housing Choice Voucher program will pay to landlords in this specific ZIP code. However, it's important to understand how this payment works alongside the tenant's contribution and utility allowances.
The local market rent for a two-bedroom apartment in ZIP 56222, according to Census ACS data, is $1,066. This lower market rent suggests that landlords might find the SAFMR rate advantageous, but the actual reimbursement can be less straightforward.
A voucher holder is typically required to contribute 30% of their adjusted monthly income towards rent. If we assume an average adjusted monthly income of $1,500, the tenant would contribute $450 toward the rent. The remaining balance up to the SAFMR rate of $1,250 would be covered by the voucher program, minus any utility allowances.
To break it down further:
Utility allowances vary and are determined by the local Public Housing Agency (PHA). Assuming a utility allowance of $200, the final reimbursement to the landlord would be $800 + $200 = $1,000. This means the landlord receives $1,000 from the voucher program plus the $450 from the tenant, totaling $1,450, which exceeds the local market rent of $1,066.
In ZIP 56222, the typical reimbursement gap or surplus for a two-bedroom apartment is a surplus of $384 ($1,450 - $1,066). This surplus provides landlords with a higher income than the local market rent, making Section 8 vouchers a favorable option for rental properties in this 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.