Location: Yellow Medicine County, MN | Metro: Lincoln County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
U.S. Census Bureau data (2024)
The ZIP code 56264 stands out in its county with a population of 2,277 residents, where 18.9% of them rent their homes. The median income for households in this area is $81,071, indicating a middle-class community. The median home value of $187,403 suggests that homeownership is valued and affordable relative to incomes.
When it comes to voucher economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, which is notably higher than the current market rent of $675 as reported by the Census Bureau's American Community Survey (ACS). This discrepancy presents an opportunity for landlords and small-portfolio investors who can leverage the higher FMR rates to increase their rental income. However, it also implies that there could be a significant gap between the government-subsidized rents and what the market currently supports, which might affect demand for Section 8 tenants.
The data signature for ZIP 56264 reads as "stable." Despite the higher FMR compared to market rates, the median income and home values suggest a community that is financially sound and unlikely to experience rapid changes in housing dynamics. For investors, this stability means that while there may be a slight premium in rents through Section 8 vouchers, the overall risk is mitigated by the consistent economic conditions of the area.
To summarize, ZIP 56264 offers a balanced environment for real estate investment, particularly in the context of Section 8 programs. With a stable economic base and the potential for increased rental income through higher FMR rates, landlords and small-portfolio investors can find a niche market that aligns with both their financial goals and the needs of the community.
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.