Location: Meeker 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 | $800 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $204,024 | 0.56% | F |
| 3BR | $1,570 | $242,892 | 0.65% | D |
| 4BR | $1,580 | $299,963 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 55355, located in Litchfield, Minnesota, presents a market where rental dynamics suggest a balance between supply and demand, but with subtle indications that demand might slightly edge out supply. The Fair Market Rent (FMR) for the area is set at $1,030 for the fiscal year 2026, while the actual market rent is currently at $999 according to Census ACS data. This implies that landlords are pricing their properties below the FMR threshold, which could be an attempt to attract tenants in a competitive environment or reflect a slight surplus of rental units.
The low price-cut share of 0.1% further supports the notion that landlords are not heavily discounting rents to fill vacancies, indicating a relatively stable tenant base and steady demand. However, the lack of data on days on the market (DOM) prevents a definitive assessment of how quickly properties are being rented. A low DOM would typically indicate strong demand, whereas a higher DOM would suggest a more balanced or oversupplied market.
The median home value of $250,410 provides insight into the overall cost of homeownership in Litchfield. While this figure alone doesn't directly correlate to rental market pressures, it can influence the decision-making process of potential renters versus buyers. If homeownership is perceived as unaffordable, it can lead to increased reliance on the rental market, thereby exerting upward pressure on rental rates.
A renter share of 30.7% suggests a significant portion of the population relies on rental housing, which has implications for long-term housing pressure. High renter shares often indicate persistent housing challenges, as a substantial number of residents may face barriers to homeownership such as financial constraints or personal circumstances. This dynamic can create a continuous demand for rental properties, making the market resilient to downturns and potentially leading to steady increases in rental rates over time.
In summary, the rental market in ZIP 55355 appears to be in a state of flux, with demand possibly outpacing supply, driven by factors such as perceived affordability of homeownership and a significant renter population. Landlords and small-portfolio investors should closely monitor these trends to make informed decisions about pricing and investment strategies.
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.