2025 Section 8 Rents and Fair Market Rents in Watonwan County, MN

Fair Market Rent (FMR): HUD sets FMR by bedroom size for each area.

Payment Standard: The local PHA sets this between 90–110% of the FMR. It's the max PHA assistance.

Gross Rent: Contract rent (charged by landlord) + utility allowance (estimated tenant utility costs). Must fit payment standard limits.

Housing Assistance Payment (HAP):

The PHA pays the lower of:

• Payment standard - Tenant's Total Tenant Payment (TTP).
• Gross rent - TTP.

Landlord receives $1,100 (PHA) + $400 (tenant) = $1,500 total.

Tenant's Contribution: Higher of:

• 30% of adjusted monthly income.
• 10% of gross monthly income.
• Welfare rent (if applicable).
• PHA minimum rent.

Excess Payment: If gross rent > payment standard, the tenant covers the excess. Tenant's total cannot exceed 40% of adjusted income when signing a lease.

• Pass initial and annual HQS inspections.
• Be rented at or below HUD's FMR.
• Match the tenant's voucher size (e.g., 2-bedroom unit for 2-bedroom voucher).

• Find affordable properties on Zillow or MLS databases.
• Network with real estate agents specializing in Section 8 properties.
• Determine budget for renovation if a property doesn't meet HQS standards.
• Use BNB Calc to analyze potential properties for their Section 8 income potential.