Section 8 Fair Market Rent (FMR) for ZIP 56245 - 2027

Location: Yellow Medicine County, MN | Metro: Yellow Medicine County, MN

FY 2027 Fair Market Rent Rates

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

441

Median Household Income

$84,583

Housing Units

221

Renter Percentage

29.0%

Occupancy Rate

87.3%

Renter Occupied

The ZIP code 56245 is situated in a region that offers a mix of suburban tranquility and access to urban amenities, making it attractive for both residents and investors. The area's real estate market is influenced by various factors including the local economy, housing stock, and tenant demographics.

The Fair Market Rent (FMR) for ZIP 56245 is set at $970 for the fiscal year 2026, indicating the government's benchmark for rental rates in the area.
The average market rent based on Census ACS data stands at $630, which is significantly lower than the FMR, suggesting potential opportunities for landlords to increase rents without alienating tenants.
The median home value in the area is $139,702, reflecting the affordability of homeownership and potentially influencing the demand for rental properties among those who cannot afford to buy.
Renters make up 29.0% of the housing market, a figure that underscores the sizeable portion of the population seeking rental accommodation and highlights the ongoing need for quality rental units.
The median income in ZIP 56245 is $84,583, providing insight into the financial capacity of residents and their ability to pay higher rents or purchase homes.

In summary, ZIP 56245 presents a balanced market with a notable gap between the actual market rent and the FMR, offering landlords the chance to adjust their pricing strategies. The relatively low median home value indicates a preference for renting over buying, supported by the significant renter share. With a median income above the national average, there is a strong economic foundation to support rental price increases. This combination suggests that investing in rental properties within this ZIP code can be profitable, especially if targeting the growing segment of renters who are willing to pay closer to the FMR for quality living spaces.

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.