Location: Meeker County, MN | Metro: Kandiyohi County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 56243 operate under specific parameters that are crucial for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $970. This figure represents the maximum amount that the Housing Choice Voucher program will pay for a two-bedroom unit in this area.
In contrast, the local market rent for a two-bedroom apartment in ZIP 56243, according to Census ACS data, is $822. This lower figure indicates the average rent that tenants might be expected to pay in the absence of a voucher. However, the SAFMR is higher, reflecting the government's effort to ensure that rental units are affordable while compensating landlords fairly.
A voucher payment consists of two parts: the tenant's contribution and the government subsidy. Tenants are typically required to pay 30% of their adjusted income towards rent. In ZIP 56243, if we assume an average adjusted income for a Section 8 tenant, the tenant's portion would be calculated based on this percentage. For instance, if a tenant has an adjusted income of $2,000 per month, they would contribute $600 towards the rent.
The remaining amount is covered by the government, up to the SAFMR limit. Therefore, in this case, the government would pay the difference between the tenant's contribution and the SAFMR. If the tenant contributes $600, the government would pay the remaining $370 to reach the SAFMR of $970.
In addition to the base rent, Section 8 vouchers also include utility allowances. These allowances vary but can significantly impact the total reimbursement. For ZIP 56243, let's assume a utility allowance of approximately $150 per month. This allowance is paid directly to the landlord along with the base rent reimbursement.
Given these figures, the total reimbursement for a landlord in ZIP 56243 would be $970 for rent plus the utility allowance of $150, totaling $1,120 per month. This amount is guaranteed by the government, providing stability for landlords who might otherwise face fluctuating rents in the local market.
To summarize, in ZIP 56243, the typical reimbursement for a two-bedroom voucher would cover the full SAFMR of $970 plus a utility allowance of around $150, making it a total of $1,120 per month. Since the local market rent is $822, landlords participating in the Section 8 program can expect a surplus of about $298 per month over the local market rates, assuming the SAFMR and utility allowances remain consistent with the provided data.
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.