NORTH MANKATO — “South Central MN Multi-County HRA Payment Standards are decreasing for Nicollet County effective January 1, 2025.”
The notice from the South Central Minnesota Multi-County Housing and Redevelopment Authority was posted on North Mankato resident Andy Anderson’s front door. In an email to The Free Press he said he saw no news or public engagement on the changes and it came as a “total shock.”
Anderson said even with a voucher he is poor and “only lives on Social Security disability payments.” With the price of groceries, gas and all other essentials going up, he is anxious about the possibility of housing payments also increasing. His current home was the only Section 8 apartment he could find when he moved to North Mankato in 2023 to escape homelessness.
The HRA has implemented changes to its Housing Choice Voucher — a program that helps low-income tenants afford housing in the private market — payment standards, reflecting recent shifts in fair market rental rates that are published by the U.S. Department of Housing and Urban Development.
The notice goes on to say that new standards won’t be applied to rent calculation until the tenant’s second annual reexamination on Feb. 1, 2026. However, if a tenant moves or the size of the household changes before then, the new lower payment standard may be applied sooner.
The agency’s executive director, Jessica Place, said housing authorities are permitted to set payment standards between 90-110% of these published rates, with the South Central HRA choosing to maintain its standard at 110% of the fair rent market, which is set by HUD and represents average rent in a particular area. Payment standards are set by local HSAs to reflect actual rent amounts in the region and Place said these numbers have gone down.
According to tables provided by HSA in 2024, fair market rent for a two-bedroom apartment in Nicollet County was $1,191 and the payment standard was $1,310. Now in 2025, fair market rent is $1,174 and payment standard is $1,291. These figures impact how much financial support voucher holders receive when securing housing in the region, including the 247 housing units leased out under vouchers in Nicollet County.
“Now the HRA tells me for 2026 they are lowering how much they will help me,” Anderson said in emails to The Free Press. “I’ve put off most non-essentials for months now, and I’ve been buying less food to make my budget stretch. I’m not worried just for myself, but everyone who uses vouchers. It’s already tough for us.”
According to Place, the changes primarily affect new program participants currently searching for housing and there are “a lot of factors involved,” including local market conditions, family rent burdens and unit availability.
She said the agency calculates rental subsidies by subtracting 30% of a family’s monthly adjusted income from the lower of the payment standard or the gross rent, with the tenant covering the difference between the subsidy and the contract rent, ensuring all standards remain aligned with the housing market.
She said the 50th percentile of fair market rents was approved by HUD in 2024 due to some extra funding but not in 2025, and the agency reverted to using the 40th percentile fair market rents.
For voucher holders concerned about the changes, the agency recommends direct communication with their assigned housing coordinator. Mechanisms are provided for participants to request reviews of their rental assistance calculations.
“There’s just different processes for an applicant and for a participant. But I always encourage them to reach out to their coordinator that they work with to look into why their rent or tenant rent payment is the way that it is,” Place said. “We do what we can to answer those questions very timely. We’re a small staff, so we really make customer service the top of our priority.”
Place said the agency posts updated information on its website and provides explanations during participant orientation sessions. New applicants received immediate notification about current payment standards during their initial program briefings.
The agency provides multiple channels for communication, including website resources, direct phone contact and in-person consultations.
For more information, visit www.scmmchra.org and https://www.huduser.gov/portal/datasets/fmr.html for insight on fair market rent in the area.