Location: Yellow Medicine County, MN | Metro: Chippewa 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 | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $190,395 | 0.74% | D |
| 4BR | $1,460 | $253,505 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 56265, with a population of 7,225, has a significant rental market presence, with 27.7% of residents being renters. This indicates that the area is moderately renter-heavy, suggesting a reasonable demand for Section 8 tenants. However, it's not dominated by renters, which means the competition for voucher holders might be higher compared to areas with a larger percentage of renters.
The median household income in this ZIP is $74,848, providing a baseline for assessing the affordability of housing. The typical market rent stands at $851, which consumes approximately 11.4% of the median income when calculated monthly. This percentage is derived from dividing the annual median income by 12 months and then calculating the proportion of the monthly income that goes towards rent. It shows that rent is relatively affordable for the majority of residents.
Comparing the market rent to the Fair Market Rent (FMR), which is set at $970 for the fiscal year 2026 in the metropolitan area, the current market rent is below the FMR threshold. This suggests that landlords in ZIP 56265 have some flexibility in setting their rents without exceeding the FMR limit, which is important for qualifying for Section 8 vouchers.
A landlord in ZIP 56265 should anticipate a tenant pool that is financially stable enough to cover the typical market rent but may still require assistance due to the cost of living relative to their income. These tenants will likely be seeking properties that offer good value for money, given the affordability of the market rent compared to their income levels. Landlords should prepare to meet the requirements of the Housing Choice Voucher program, ensuring that their properties are up to code and competitive in terms of amenities and location to attract these tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.