Location: Sibley County, MN | Metro: McLeod 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 | $860 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $224,899 | 0.46% | F |
| 3BR | $1,240 | $272,294 | 0.46% | F |
| 4BR | $1,540 | $315,968 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 55312, encompassing Brownton, MN, presents a market in motion where the dynamics between supply and demand are critical to understand. The Fair Market Rent (FMR) for the area is set at $970, as projected for fiscal year 2026. This figure, established by HUD, serves as a benchmark for rental costs in the region, reflecting the anticipated average cost of decent housing for low- to moderate-income families.
In contrast, the actual market rent, based on Census ACS data, stands at $890. This indicates that the current rental prices are below the projected FMR, suggesting that there might be a slight oversupply of rental units or that the market has yet to reach equilibrium. However, the absence of specific data on price-cut share and days on market (DOM) makes it challenging to definitively conclude whether supply consistently outpaces demand or vice versa. These missing metrics would typically provide insights into how quickly properties are being leased and if landlords are having to reduce their asking rents to attract tenants.
The median home value in Brownton is $290,944, which reflects the overall cost of homeownership in the area. This figure can be used to gauge the financial health and stability of the local housing market. A higher median home value could indicate a robust economy or strong demand for homeownership, but without time-series data, we cannot determine if this value is increasing or decreasing over time.
The 10.8% renter share of the population is noteworthy. This statistic suggests that a significant portion of the residents are renters rather than homeowners. In the context of long-term housing pressure, a higher renter share can imply ongoing challenges for both landlords and tenants. Landlords must balance rental prices with affordability to maintain occupancy rates, while tenants face the potential for rising rents as the market adjusts. This dynamic can create a continuous pressure on rental prices, especially if the number of renters increases relative to the number of available rental units.
Understanding these elements—rental benchmarks, actual market rents, median home values, and renter shares—is essential for landlords and small-portfolio investors. It allows them to position themselves effectively in the Brownton, MN market, ensuring they remain competitive and responsive to the current housing dynamics.
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.