Location: Renville County, MN | Metro: Redwood 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 | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,520 | $185,793 | 0.82% | C |
| 4BR | $1,660 | $238,150 | 0.7% | D |
U.S. Census Bureau data (2024)
The ZIP code 56283 stands out due to its unique mix of relatively low rental rates and a higher-than-average percentage of renters. With a total of 6,481 residents, 26.9% of them rent their homes, which is notably above the national average. The median household income in this area is $66,352, indicating a middle-class demographic. However, the median home value is significantly higher at $192,829, suggesting that homeownership is more expensive relative to income.
In terms of voucher economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,080, while the actual market rent, based on Census American Community Survey (ACS) data, is $831. This means that landlords accepting Section 8 vouchers in ZIP 56283 can potentially charge more than the current market rate, making it an attractive option for those looking to increase their rental income. The difference between the FMR and the market rent indicates a possible opportunity for landlords to benefit from the subsidy without undercutting their profitability.
The data signature for ZIP 56283 reads as stable. The consistent median income and home values suggest a settled community where residents have established themselves over time. The rental market, though lower than the FMR, shows a steady state, likely due to the local economy and housing stock. For small-portfolio investors and landlords, this stability means that the risks associated with fluctuations in renter demand and income levels are minimized. They can rely on the predictability of the rental market and the additional support from Section 8 vouchers to maintain steady cash flows and occupancy rates.
Investors should note that the higher median home value compared to income could indicate a growing trend towards appreciation, possibly driven by factors such as low supply or high demand for owner-occupied properties. This dynamic could impact the rental market in the future, but currently, the environment remains stable, offering a reliable setting for investment in rental properties.
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.