Location: Yellow Medicine County, MN | Metro: Lyon County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
11.5% of residents in ZIP 56297 are renters, indicating a modest demand for rental properties in the area. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,010, which provides a benchmark for rental pricing. However, the Census ACS reports a market rent of $660, suggesting that actual rents are below the FMR, potentially leaving room for rental increases. The median home value in the region stands at $172,562, offering a relatively affordable entry point for property investment. Given the median income of $82,250, most households can afford the current market rent, but the gap between market rent and FMR highlights a potential opportunity for landlords to adjust their pricing. Unfortunately, the data does not provide the average days on market (DOM) or the percentage of homes that have been price-cut, which would be useful indicators for assessing the local housing market's liquidity and competitiveness. Despite these gaps in information, the disparity between the FMR and market rent suggests that landlords could consider raising their rents to align more closely with the FMR without significantly impacting occupancy rates.
The verdict for Section 8 participation in ZIP 56297 is mixed. While the lower market rent compared to the FMR indicates a possible advantage for landlords who can charge higher rents, the limited data on DOM and price-cut share makes it difficult to assess the full picture. Landlords should carefully evaluate the local market dynamics before deciding to participate in the Section 8 program.
Data Sources: FMR data from HUD (2027). 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.