Location: Meeker 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 |
|---|---|---|---|---|
| 2BR | $1,540 | $294,066 | 0.52% | F |
| 3BR | $2,040 | $366,213 | 0.56% | F |
| 4BR | $2,280 | $437,200 | 0.52% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Dassel, MN (ZIP 55325), is poised to present a balanced scenario for landlords and small-portfolio investors over the next 12-24 months. The median home value stands at $342,053, which serves as a foundational metric for understanding the local market's valuation. While the percentage of listings that have been reduced and the median days on market (DOM) are currently unavailable, the stability suggested by the median home value indicates a resilient housing market.
The Federal Market Rent (FMR) for ZIP 55325 is set at $1,430 for fiscal year 2024, compared to the current market rent of $851 according to the Census ACS. This significant gap between FMR and actual market rents signals strong potential for rental income growth. Landlords can leverage this discrepancy by gradually increasing rents to align with the FMR, thereby enhancing their cash flow. However, it is important to note that any increase should be gradual and considerate of local economic conditions to avoid tenant turnover.
For long-term investors, the setup in Dassel suggests a moderate appreciation thesis. The current median home value, combined with the underpriced rental market relative to FMRs, points towards an environment where property values are likely to grow at a steady pace. This growth is contingent upon the broader economic health of the region and national trends, but the local data supports a positive outlook. As rental rates adjust upward, they often serve as a leading indicator for residential property value appreciation, due to the increased demand for homeownership driven by higher rental costs.
Investors should also pay attention to the broader demographic and economic factors affecting Dassel. A stable or growing population, along with job creation and wage increases, can further bolster both the housing and rental markets. Additionally, the lack of reduced listings and a stable DOM suggest that the market is not oversupplied with homes, which helps maintain pricing power.
In summary, the data implies a favorable setup for both rental income growth and property value appreciation in Dassel, MN. Landlords and small-portfolio investors can expect to see positive returns, especially if they are prepared to adjust rents in line with FMRs while maintaining competitive occupancy rates. The median home value provides a solid base for future appreciation, assuming continued economic stability and growth in the area.
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.