Location: Stevens County, MN | Metro: Big Stone 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 | $740 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $169,905 | 0.62% | D |
| 3BR | $1,260 | $190,984 | 0.66% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 56278, which includes Ortonville, MN, and parts of Big Stone County, revolve around the SAFMR (Small Area Fair Market Rent) set by HUD. For a two-bedroom apartment in this ZIP code, the SAFMR for fiscal year 2026 is $980. This figure represents the maximum amount that the housing authority will pay towards rent on behalf of eligible tenants.
In contrast, the local market rent for a two-bedroom unit, based on Census ACS data, is $748. This means that the SAFMR exceeds the local market rent by $232. However, it's important to understand how the actual reimbursement works once you factor in the tenant portion and utility allowances.
The Section 8 program operates under the principle that the tenant will pay approximately 30% of their adjusted monthly income towards rent. The remaining amount, up to the SAFMR, is covered by the housing voucher. Additionally, there are utility allowances that vary but are typically around $200-$300 per month for a two-bedroom unit.
To illustrate, if a tenant has an adjusted monthly income of $1,000, they would pay about $300 towards rent. If the SAFMR is $980, then the housing authority would cover the difference between the tenant's contribution and the SAFMR. In this case, the housing authority would pay $680.
However, the local market rent is $748. So, the landlord would receive the tenant's $300 plus the housing authority's reimbursement of $680, totaling $980. This is above the local market rent, indicating a surplus for the landlord.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 56278 is a surplus of $232. This means landlords can expect to be paid more than the average market rate, making participation in the Section 8 program financially beneficial in this area.
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.