Location: Yellow Medicine County, MN | Metro: Redwood County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 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)
The ZIP code 56237 stands out due to its unique mix of economic indicators and housing dynamics. With only 553 residents, it has a rental rate of 10.0%, which is notably low compared to national averages. The median income here is $89,000, suggesting a relatively affluent population. However, the median home value of $182,616 indicates that homeownership is a significant factor in the local economy, with a high cost barrier for those seeking to buy.
The voucher economics in ZIP 56237 present an interesting opportunity for landlords. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $970, while the current market rent, based on Census ACS data, is $611. This discrepancy means that landlords can potentially receive higher rents through Section 8 vouchers, effectively subsidizing the difference between the actual market rate and the higher FMR. It's important to note that the lower market rent could also indicate a smaller pool of renters who qualify for the voucher program, given the higher median income and home values.
Based on the data signature, ZIP 56237 appears to be a stable area with a strong homeowner base and limited rental activity. The low percentage of renters suggests that any transitional changes would likely be gradual and influenced by broader economic trends rather than sudden shifts in the local housing market. Landlords and small-portfolio investors should consider these factors when deciding whether to participate in the Section 8 program, weighing the benefits of higher voucher rents against the potential challenges of a smaller qualified tenant pool.
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.