Location: Redwood County, MN | Metro: Lyon County, MN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $160,367 | 0.64% | D |
| 3BR | $1,430 | $213,352 | 0.67% | D |
| 4BR | $1,720 | $263,953 | 0.65% | D |
| 5BR | $1,995 | $351,221 | 0.57% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 56258, Marshall, Minnesota, in the fiscal year 2026 is set at $990. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit in this area, which is determined by the U.S. Department of Housing and Urban Development (HUD). It's important to note that this is the payment standard, meaning it's the amount that HUD will pay on behalf of the tenant, not necessarily the rent you can charge.
In comparison, the local Zillow Rent Index (ZORI) for the same area is $771. This suggests that the market rent is below the FMR, providing a buffer for landlords who might otherwise be concerned about losing money on Section 8 rentals. The difference between the FMR and the ZORI indicates that landlords participating in the Section 8 program in Marshall can expect a higher guaranteed income compared to the average market rate.
The renter share, which is 34.2%, shows the portion of the population that rents rather than owns their homes. This high percentage signals strong demand for rental properties, including those available through Section 8. Landlords should take advantage of this demand, knowing that there is a significant pool of potential tenants who may be interested in their properties.
When acquiring a property in this area for use in the Section 8 program, the median home value of $233,719 provides a benchmark for the purchase price. This figure helps investors understand the typical cost of a property in Marshall, allowing them to make informed decisions about whether the investment aligns with their financial goals and expectations.
Before committing to a Section 8 rental in ZIP 56258, it is crucial to verify that your property meets all the necessary quality standards set by HUD. These standards ensure that the living conditions are safe and decent for tenants. By confirming compliance with these requirements, landlords can avoid costly repairs and ensure they receive the full FMR payment without issues.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.