Location: Renville 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 | $870 |
| 1 Bedroom | $870 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,430 | $180,611 | 0.79% | D |
U.S. Census Bureau data (2024)
The ZIP code 56277, with a population of 2,905, has a significant portion of its residents as renters at 29.8%. This indicates a moderate tenant-heavy environment, suitable for landlords and small-portfolio investors looking to attract Section 8 tenants. The median household income in this area stands at $70,326, which is notably lower than the Fair Market Rent (FMR) threshold of $1,010 for FY 2026 in the metro area. This suggests that there is a substantial demand for rental assistance vouchers.
To further understand the economic dynamics, consider the average market rent of $798. This represents approximately 11.4% of the median household income. In comparison, the FMR of $1,010 would consume about 14.4% of the median income, highlighting the affordability gap for many residents and reinforcing the need for rental assistance programs.
A landlord in ZIP 56277 can expect a tenant profile characterized by individuals and families who rely on rental assistance vouchers to meet their housing needs. These tenants are likely to have incomes below the median, necessitating financial aid to afford the average market rent. Given the lower median income relative to both the market rent and the FMR, it's clear that a significant number of potential tenants will be seeking the support of Section 8 vouchers to secure housing.
In summary, ZIP 56277 presents a viable market for Section 8 tenants, with a notable percentage of renters and a median income that supports the use of rental assistance vouchers. Landlords should prepare for a tenant pool that includes a high proportion of voucher holders, ensuring compliance with HUD regulations and understanding the benefits and responsibilities associated with accepting Section 8 tenants.
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.