Location: Renville 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 | $890 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $970 | $179,430 | 0.54% | F |
| 2BR | $1,090 | $256,386 | 0.43% | F |
| 3BR | $1,300 | $284,983 | 0.46% | F |
| 4BR | $1,620 | $335,920 | 0.48% | F |
| 5BR | $1,879 | $403,451 | 0.47% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 55350, encompassing Hutchinson, MN, and parts of Renville County, does not fully align with the federal standards. The Fair Market Rent (FMR) set at $1,030 for the fiscal year 2026 contrasts sharply with the actual market rent of $939 as reported by the Census ACS. This discrepancy indicates that while landlords can aim for the higher FMR, the local market may not support such rates.
Acquisition of properties in this area remains relatively affordable. With a median home value of $293,376, potential investors have a clear anchor point for property costs. However, the lack of data on days on market (DOM) and the low percentage of homes needing price reductions (0.2%) suggest that the housing market is stable and perhaps slightly competitive. Investors should be cautious about overpaying for properties but can still find value in the current market conditions.
Tenant demand is present but not overwhelming. The ZIP code has a total population of 18,610, with 26.8% of residents being renters. This percentage translates to approximately 4,986 rental units needed, indicating a steady demand for rental properties. Landlords can expect consistent occupancy rates, provided they offer competitive rents and maintain their properties well.
Overall, ZIP 55350 presents a mixed picture for small-portfolio investors and landlords. While the local market rent falls below the FMR, the stable property values and existing tenant demand make it a viable investment location. Success will hinge on offering competitive rents and maintaining high-quality properties to meet the needs of the 26.8% renter share. The area's affordability and moderate demand suggest a cautious approach to investment, focusing on value and quality rather than speculative pricing.
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.