Location: Rice County, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
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 | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,040 | $563,447 | 0.36% | F |
| 4BR | $2,280 | $688,819 | 0.33% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 55088 suggests a balanced market with implications for both pricing power and rental income. With a median home value of $592,158, the area maintains a strong position in terms of asset valuation. However, the absence of data regarding the percentage of listings that have been reduced and the median days on market (DOM) indicates a stable pricing environment where neither significant price reductions nor extended periods of unsold inventory are prevalent.
This stability in pricing signals that landlords and small-portfolio investors can expect to maintain their current pricing levels without substantial adjustments over the next 12-24 months. The lack of widespread price reductions among listings supports the notion that there is still demand for properties at current valuations, which means pricing power remains relatively intact. Landlords should continue to monitor local market conditions closely, but there is no immediate indication that they need to lower their asking prices.
On the rental side, the Fair Market Rent (FMR) for ZIP 55088 is set at $1790 for fiscal year 2024. This figure provides a benchmark for rental rates in the area. Given the lack of data on the current market rental rates, it's reasonable to assume that rents are aligned with the FMR, ensuring that landlords can charge competitive rates while maintaining occupancy levels. Investors should be aware that rental rates may fluctuate based on supply and demand dynamics, but the FMR serves as a solid reference point for setting rents.
For long-term investors looking at appreciation potential, the current data implies a moderate growth scenario. While the median home value is robust, the absence of trends indicating significant increases or decreases in property values suggests that appreciation will likely follow broader regional and national housing market patterns. There is no compelling evidence to suggest rapid appreciation, but steady growth aligns with historical trends in similar markets. Long-hold investors should focus on the stability of the ZIP 55088 market and the potential for gradual asset value increases over time.
In summary, ZIP 55088 presents a market where pricing power is maintained due to stable home values and a lack of widespread price reductions. Rental income is supported by competitive rates aligned with the FMR, and long-term investors can anticipate moderate appreciation rather than dramatic fluctuations in property values. This setup offers a predictable and stable investment environment for those looking to hold properties for an extended period.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.