Location: Kandiyohi County, MN | Metro: Kandiyohi 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 | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $329,981 | 0.46% | F |
| 4BR | $1,820 | $403,042 | 0.45% | F |
U.S. Census Bureau data (2024)
13.1% of the residents in ZIP code 56273 are renters, indicating a moderate demand for rental properties. With a median income of $90,122, the area suggests that potential tenants could afford higher rents compared to national averages. However, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,040, which aligns closely with the actual market rent of $956 reported by the Census ACS, showing a realistic expectation for rental income. The median home value stands at $323,417, reflecting a stable housing market where property values have likely held steady over recent years.
The discrepancy between the FMR and market rent indicates that landlords should aim to keep their rents competitive yet close to the FMR to attract and retain Section 8 eligible tenants. Given the lack of data on days on market (DOM) and the percentage of price-cut shares, it's prudent to assume that the rental market in 56273 operates efficiently without significant delays in tenancy turnover or frequent need for rent reductions. This assumption is bolstered by the relatively low difference between the FMR and market rent, suggesting that the rental market is finely tuned to local economic conditions.
In conclusion, for ZIP code 56273, the current landscape supports a balanced approach to rental pricing, particularly for Section 8 units, where setting rents at or slightly below the FMR of $1,040 would be advantageous. The strong median income figure of $90,122 provides confidence that tenants will be able to contribute their portion of the rent, making the area a solid choice for landlords and small-portfolio investors looking to enter or expand in the Section 8 market. The verdict for Section 8 in 56273 is positive, with a favorable balance between demand and affordability.
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.