Location: Goodhue County, MN | Metro: Goodhue 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 | $840 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $230,551 | 0.52% | F |
| 3BR | $1,670 | $281,329 | 0.59% | F |
| 4BR | $2,020 | $358,334 | 0.56% | F |
| 5BR | $2,343 | $414,407 | 0.57% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 55066, located in Red Wing, Minnesota, hinges on the balance between rental yield and market stability. With a Fair Market Rent (FMR) of $1,150 for the metro area in fiscal year 2026, the median market rent stands at $1,390. This indicates a higher-than-average rental yield potential compared to the metro average. The median home value of $284,875 further supports the notion that there is significant upside in rental income relative to property values.
However, the stability of the market is somewhat less favorable. Only 25.6% of residents are renters, which is a relatively low percentage. This suggests that the demand for rental properties might be limited, potentially leading to periods where finding tenants could be challenging. Additionally, the lack of data on days on market (DOM) means we cannot assess how quickly properties are typically rented out, adding an element of uncertainty to the market's stability.
The average income of $73,584 provides insight into the financial capacity of potential renters. While this figure is not exceptionally high, it does suggest that the majority of residents can afford the median market rent of $1,390. However, the lower percentage of renters implies that there might be a smaller pool of individuals actively seeking rental housing, which could impact the speed and frequency of tenancy turnover.
Based on these figures, ZIP 55066 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The higher-than-metro average rental yields are attractive, but the relatively low percentage of renters and the unknown rate of tenancy turnover indicate a market that is more suited to long-term investments with consistent cash flow rather than rapid property flips. Landlords and small-portfolio investors should focus on properties that can be rented at or slightly below the market rate of $1,390 to ensure they attract the available tenant pool and maintain a stable occupancy rate.
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.