Location: Yellow Medicine County, MN | Metro: Lac qui Parle County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
U.S. Census Bureau data (2024)
ZIP code 56223, located within Yellow Medicine County, MN, presents a unique profile when compared to other ZIP codes in the county. The Fair Market Rent (FMR) for ZIP 56223 is set at $1,120 for fiscal year 2026, which is higher than the average market rent of $806. This suggests that while the government considers the area's rent to be at a fair market level, the actual market rent is lower, indicating potential subsidies for renters through programs such as Section 8.
The median home value in ZIP 56223 stands at $146,211, which is likely indicative of the broader county's housing affordability. However, it's the 16.5% renter share that truly sets ZIP 56223 apart. In Yellow Medicine County, MN, ZIP codes typically have a lower percentage of renters, making 56223 a notable exception with its higher-than-average rental population.
This combination of a higher FMR relative to the market rent, along with a significant renter share, points towards ZIP 56223 being a value pocket within the metro area. Landlords and small-portfolio investors can leverage the Section 8 program to ensure steady occupancy and reliable income streams. The disparity between the FMR and market rent also suggests that there might be opportunities for price adjustments upwards, without exceeding the FMR threshold, thus maximizing profit margins.
In summary, ZIP 56223 offers a strategic investment opportunity due to its favorable conditions for subsidized rentals. The higher renter share combined with below-average home values and a lower market rent than the FMR creates an environment where Section 8 properties can thrive. This makes it a prime location for those looking to invest in a stable rental market with government-backed support.
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.