Renting · Section 8
Data from November 2026
Renting in Steele County, Minnesota
Steele County has a HUD fair market rent of $1,244 a month for 2 bedrooms (Fiscal year 2027). Renter households here pay a typical rent of $1,061 a month (Average 2020–2024). Paying the fair market rent without going over 30% of income takes $23.92 an hour, full time.
Four numbers to start with
- Fair market rent, 2 bedrooms
- $1,244
- a month, HUD, Fiscal year 2027
- 17% less than in Minnesota
- Typical rent
- $1,061
- a month, Census, Average 2020–2024
- 17% less than in Minnesota
- Wage needed
- $23.92
- an hour, 2 bedrooms
- Or $49,760 a year, to spend no more than 30% of income on rent.
- Rent-burdened households
- 61%
- spend 30% or more of income on rent
- 27% more than in Minnesota
Only here
Renting in Steele County: what sets it apart
What this place has that others do not, from public data, most unusual first.
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At 61%, Steele County ranks 3rd among the 87 counties in Minnesota for the largest share of rent-burdened renters.
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Among the neighboring counties, Freeborn County has the lowest typical rent ($849), 20% below the $1,061 in Steele County.
Sources: U.S. Census Bureau (Average 2020–2024).
Fair market rent
What HUD sets for each size
Every year HUD (the U.S. Department of Housing and Urban Development) publishes a Fair Market Rent (FMR) for each home size in Steele County. It is used to work out how much a Section 8 voucher covers. The table shows what you need to earn to pay it without spending more than 30% of income.
The fair market rent covers rent plus basic utilities, except the phone. HUD generally sets it at the 40th percentile: 4 in 10 standard-quality homes rented recently cost less. 24 CFR §888.113(a)
According to Zillow (ZORI), the typical asking rent in Steele County was $1,068 a month in September 2026. It is an index of market listings, not a HUD limit. Zillow data
| Size | Fair rent per month | Hourly wage | Income needed per year |
|---|---|---|---|
| Studio | $866 | $16.65 | $34,640 |
| 1 bedroom | $951 | $18.29 | $38,040 |
| 2 bedrooms | $1,244 | $23.92 | $49,760 |
| 3 bedrooms | $1,703 | $32.75 | $68,120 |
| 4 bedrooms | $1,814 | $34.88 | $72,560 |
HUD area: Steele County, MN. Source: HUD, Fiscal year 2027
By ZIP code
The fair market rent for your ZIP code
HUD also publishes fair market rents by ZIP code (Small Area FMRs) for 11 ZIP codes in Steele County (Fiscal year 2027). Type yours to see it.
For 2 bedrooms they run from $1,040 in 56026 to $1,410 in 55049. 7 ZIP codes are above the county's fair market rent ($1,244).
Where HUD designates these areas, or where the housing agency chooses to use them, the voucher is figured on the ZIP code's rent instead of the county's. Ask your agency which one it uses. 24 CFR §982.503(a)(1)
| 55049 | Rice County, MN | $980 | $1,080 | $1,410 | $1,930 | $2,060 |
|---|---|---|---|---|---|---|
| 55049 | Steele County, MN | $980 | $1,080 | $1,410 | $1,930 | $2,060 |
| 55060 | Steele County, MN | $870 | $960 | $1,250 | $1,710 | $1,820 |
| 55917 | Freeborn County, MN | $1,010 | $1,080 | $1,270 | $1,770 | $2,130 |
| 55917 | Mower County, MN | $1,010 | $1,080 | $1,270 | $1,770 | $2,130 |
| 55917 | Rochester, MN | $1,010 | $1,080 | $1,270 | $1,770 | $2,130 |
| 55917 | Steele County, MN | $1,010 | $1,080 | $1,270 | $1,770 | $2,130 |
| 56026 | Freeborn County, MN | $720 | $800 | $1,040 | $1,410 | $1,640 |
| 56026 | Steele County, MN | $720 | $800 | $1,040 | $1,410 | $1,640 |
| 56026 | Waseca County, MN | $720 | $800 | $1,040 | $1,410 | $1,640 |
| 56046 | Steele County, MN | $860 | $950 | $1,230 | $1,680 | $1,790 |
- 55049 · Rice County, MN $1,410$1,930
- 55049 · Steele County, MN $1,410$1,930
- 55060 · Steele County, MN $1,250$1,710
- 55917 · Freeborn County, MN $1,270$1,770
- 55917 · Mower County, MN $1,270$1,770
- 55917 · Rochester, MN $1,270$1,770
- 55917 · Steele County, MN $1,270$1,770
- 56026 · Freeborn County, MN $1,040$1,410
- 56026 · Steele County, MN $1,040$1,410
- 56026 · Waseca County, MN $1,040$1,410
- 56046 · Steele County, MN $1,230$1,680
Source: Small Area Fair Market Rents (HUD) Fiscal year 2027 Small Area Fair Market Rents (HUD) (external site)
Rent burden
How many households spend too much
HUD counts rent as a burden when it reaches 30% of income or more. In Steele County, 61% of renter households are in that position; in Minnesota, 48%, and nationwide, 51% (Average 2020–2024, Census).
Paying too much rent leaves little for food, transportation and savings. If that is you, the agencies below can guide you for free.
61%
of renter households spend 30% or more of their income on rent.
3,118 households rent in Steele County
- Spend half or more of their income 23%
- Spend 30% or more, but less than half 37%
- Spend less than 30% 39%
Compared with the state and the country
- Steele 61%
- Minnesota 48%
- United States 51%
Low-income apartments
Low-income apartments in Steele County
HUD lists 14 properties with homes for low-income households in Steele County: tax-credit apartments (LIHTC) and HUD-assisted buildings. They run from the most low-income homes to the fewest.
- with tax credits (LIHTC)
- 6
- HUD-assisted
- 8
578 homes in all; 517 of them low-income, according to HUD.
- Cedardale South HUD-assisted 315 22nd St SE, Owatonna 55060 98 low-income homes · For families · (507) 455-1693
- Cedardale Place A/K/A Cedardale South Tax credit (LIHTC) Multiple Building Addresses, Owatonna 55060 98 homes, 97 low-income · 1 bd: 67 · 2 bd: 21 · 3 bd: 10 · In service since 2002
- Ivanhoe Apartments HUD-assisted 220 18th St SW, Owatonna 55060 76 homes, 68 low-income · For families · (507) 455-0600
- Parkview Heights Townhouses HUD-assisted 402 Saint Paul Pl, Owatonna 55060 48 low-income homes · For families · (507) 451-9680
- Northgate Apartments Tax credit (LIHTC) 131 W Rose St, Owatonna 55060 36 low-income homes · 1 bd: 9 · 2 bd: 27 · In service since 2016
- Willow Run Townhomes Phase II Tax credit (LIHTC) Multiple Building Addresses, Owatonna 55060 32 homes, 28 low-income · 3 bd: 32 · In service since 2004 · For families
- Owatonna Senior Housing, Inc. aka Maple Trail HUD-assisted 165 24th Pl NW, Owatonna 55060 26 homes, 25 low-income · For older adults · (651) 645-7271
- Cedar Run Townhomes Tax credit (LIHTC) 2300 N Cedar Ave, Owatonna 55060 24 homes, 23 low-income · 3 bd: 24 · In service since 1997
- Willow Run Townhomes Tax credit (LIHTC) Multiple Building Addresses, Owatonna 55060 24 homes, 22 low-income · 3 bd: 23 · 4 bd: 1 · In service since 1999
- Medford Manor HUD-assisted 216 1st St SE, Medford 55049 20 low-income homes · For older adults · (800) 676-6505
- Prairie Villa I Apartments HUD-assisted 455 2nd St SE, Blooming Prairie 55917 15 low-income homes · For older adults · (800) 676-6505
- Kay Knutson Apts Aka Asi-Owatonna, Inc HUD-assisted 905 El Dorado St SE, Owatonna 55060 14 low-income homes · For people with disabilities · (651) 645-7271
- Prairie Villa I Tax credit (LIHTC) Multiple Building Addresses, Blooming Prairie 55917 12 low-income homes · 2 bd: 6 · 3 bd: 6 · In service since 1999
- Lincoln Square HUD-assisted 435 16th St NE, Owatonna 55060 55 homes, 11 low-income · For families · (507) 451-7840
Source: HUD, retrieved November 6, 2026. LIHTC database, updated May 14, 2025; Assisted multifamily properties, updated October 23, 2026; Public housing developments, updated October 23, 2026.
Section 8
The Section 8 voucher in Steele County
The Housing Choice Voucher (Section 8) pays part of your rent on a home you choose. Your public housing agency runs it. 1 agency serves in Steele County. Here is what the rules say:
The rules, with their source
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You apply at the public housing agency. If you qualify, your name usually goes on a waiting list. Applicants must be U.S. citizens or noncitizens with eligible status as HUD defines it. Source: HUD
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Generally, your family must have very low income: no more than 50% of the area median income, by family size (the middle column of the table). Source: 24 CFR §5.603, §982.201(b)
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Each year, at least 75% of the families an agency admits from its list must have extremely low income (the 30% column). Source: 24 CFR §982.201(b)(2)
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If the rent is below the payment standard, the family generally pays 30% of its adjusted monthly income. If it is above, the family pays more. Source: 24 CFR §982.1(a)(3)
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When you move in, if the rent is above the payment standard, your share cannot go over 40% of your adjusted monthly income. Source: 24 CFR §982.508
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Each agency sets a payment standard for each size. Without asking HUD, it can go from 90% to 110% of the fair market rent. Source: 24 CFR §982.503(b), (c)
| People | Extremely low (30%) | Very low (50%) | Low |
|---|---|---|---|
| 1 person | $24,600 | $40,950 | $65,550 |
| 2 people | $28,100 | $46,800 | $74,900 |
| 3 people | $31,600 | $52,650 | $84,250 |
| 4 people | $35,100 | $58,500 | $93,600 |
| 5 people | $38,680 | $63,200 | $101,100 |
| 6 people | $44,360 | $67,900 | $108,600 |
| 7 people | $50,040 | $72,550 | $116,100 |
| 8 people | $55,720 | $77,250 | $123,600 |
Area median income: $117,000. HUD income limits by family size, Fiscal year 2026. Area: Steele County, MN. Source: HUD, Fiscal year 2026
Possible payment standard
- Studio $779 – $953
- 1 bedroom $856 – $1,046
- 2 bedrooms $1,120 – $1,368
- 3 bedrooms $1,533 – $1,873
- 4 bedrooms $1,633 – $1,995
The range the rule allows: 90% to 110% of the county's fair market rent. Your agency publishes its own.
Housing agencies that serve this place
- Owatonna Hra Section 8 vouchers · 157 vouchers (507) 774-7318 Owatonna Hra: Troy.Klecker@ci.owatonna.mn.us
Housing agencies in Minnesota Source: HUD, Retrieved November 6, 2026
Your rights as a tenant in Minnesota
What Minnesota law says about deposits, notices and eviction, with the citation for each rule.
See your rights, rule by ruleCompare these rules with other states →
A summary of state law, not legal advice. Cities may have additional rules.
- When must they return my deposit?
- 21 days
- Minn. Stat. §504B.178, subd. 3(a)
- If I fall behind on rent, what notice must I get?
- 14 days
- Minn. Stat. §504B.321, subd. 1a(a)
- Only a court order can remove youMinn. Stat. §504B.375, subd. 1
- Protection from retaliationMinn. Stat. §504B.441
Help
Where to get help with rent in Steele County
These are the nearest HUD-approved agencies. They counsel for free or at low cost.
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Three Rivers Community Action, Inc.
1414 Northstar Dr, Zumbrota · 34 miles away · Spanish
Also serves in other languages.
- Pre-purchase counseling
- Homebuyer education workshops
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Southwest Minnesota Housing Partnership Mankato Branch
140 Homestead Rd, Mankato · 38 miles away · Spanish
- Mortgage delinquency and default
- Budget and financial counseling
- and 5 more
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Lutheran Social Service of Minnesota
710 South 2nd Street, Mankato · 40 miles away
- Mortgage delinquency and default
- Budget and financial counseling
- and 2 more
Rental assistance programs
The ones that serve in Steele County or the whole state, with what each page says about being open.
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Renter's Credit
Run by Minnesota Department of Revenue
Minnesota refundable credit for renters, claimed on the state tax return; it can be claimed with a Social Security number or an ITIN
Up to $2,720
See details
Tool
How much cash do you need to move in?
It starts with the 2-bedroom fair market rent in Steele County. Change the rent, the deposit and the fees to yours: the numbers stay in your browser.
Count power on top of the rent: in Minnesota, the average home bill was $110 a month in 2024 (EIA). See electricity and gas costs
Your move
We use the place's fair market rent and the state's deposit rule.
Adjust advanced details
Let's do the math
Cash to move in
$2,488
What you need before you get the keys.
What adds up
- First month
- $1,244
- Security deposit
- $1,244
- Total
- $2,488
When you'll have it
Enter what you can set aside each month to see how long it takes.
What helps
- Ask for a receipt for every payment and keep a copy of the lease.
- On move-in day, walk through the home and take dated photos.
- Never send money for a home you haven't seen or a lease you haven't read.
This is a planning estimate, not a price. What you are asked for depends on the landlord, your lease and your state's and city's rules. It is not legal advice.
Frequently asked questions
What is the fair market rent in Steele County?
According to HUD (Fiscal year 2027): Studio: $866; 1 bedroom: $951; 2 bedrooms: $1,244; 3 bedrooms: $1,703; 4 bedrooms: $1,814. It covers rent plus basic utilities, except the phone.
How much do you need to earn to rent in Steele County?
Paying the 2-bedroom fair market rent ($1,244) without spending more than 30% of income takes $23.92 an hour full time, or $49,760 a year.
Who qualifies for Section 8 in Steele County?
Generally, families with very low income: no more than 50% of the area median income. For 4 people, HUD's limit here is $58,500 a year (Fiscal year 2026). The family usually pays 30% of its adjusted monthly income. You apply at the housing agency.
How much does Section 8 pay in Steele County?
The voucher pays up to your housing agency's payment standard, minus your share. The rule lets the agency set it between 90% and 110% of the fair market rent: for 2 bedrooms here, between $1,120 and $1,368 a month. Your agency publishes its figure.
Does the fair market rent change by ZIP code in Steele County?
For 2 bedrooms they run from $1,040 in 56026 to $1,410 in 55049. Where HUD designates these areas, or where the housing agency chooses to use them, the voucher is figured on the ZIP code's rent instead of the county's. Ask your agency which one it uses.
How many low-income apartments are there in Steele County?
HUD lists 14 properties with homes for low-income households in Steele County: tax-credit apartments (LIHTC) and HUD-assisted buildings. They run from the most low-income homes to the fewest. For tax-credit apartments and HUD-assisted buildings, you apply directly at the building's management office. They tell you whether units are open and how to apply; HUD does not have that information.
How many households spend too much on rent in Steele County?
HUD counts rent as a burden when it reaches 30% of income or more. In Steele County, 61% of renter households are in that position; in Minnesota, 48%, and nationwide, 51% (Average 2020–2024, Census).