Location: Lac qui Parle County, MN | Metro: Lac qui Parle County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 56256 are defined by the SAFMR (Small Area Fair Market Rent) and the local market conditions. For a two-bedroom apartment in ZIP 56256, the SAFMR for fiscal year 2026 is set at $1,110. This figure represents the maximum amount that a Section 8 voucher can cover for rent in this specific ZIP code. In contrast, the local market rent for a similar unit, according to the Census ACS, averages around $839.
A landlord participating in the Section 8 program will receive payments based on the SAFMR rather than the local market rent. However, it's important to understand how these payments are structured. The total rent is split into two parts: the tenant's portion and the government's portion. The tenant is typically responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income for tenants in this area, the tenant’s share would be calculated accordingly. For example, if a tenant has an adjusted income of $1,000 per month, they would pay approximately $300 towards rent.
Beyond the base rent, there are utility allowances that must be considered. These allowances vary but are generally intended to cover a reasonable estimate of the costs associated with utilities such as electricity, water, and gas. Utility allowances are not directly paid to the landlord but are part of the overall calculation for the voucher amount. They do not increase the reimbursement received by the landlord for rent itself.
To determine the actual reimbursement a landlord receives, subtract the tenant's portion from the SAFMR. Using the $1,110 SAFMR as our benchmark, if the tenant pays $300, the government would cover the remaining $810. This means that even though the SAFMR is higher than the local market rent, the landlord does not necessarily earn more due to the fixed percentage paid by the tenant. The reimbursement is capped at the SAFMR, so if the local market rent is lower, the landlord might still receive less than the market value.
In ZIP 56256, the typical reimbursement gap or surplus for a two-bedroom unit is a surplus of $71, calculated as the difference between the SAFMR ($1,110) and the local market rent ($839), minus the tenant's portion ($300). This surplus provides a slight buffer for landlords who choose to participate in the Section 8 program, ensuring that they are not significantly underpaid compared to the local market rates.
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.