Location: McLeod 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $250,568 | 0.61% | D |
| 3BR | $2,040 | $287,696 | 0.71% | D |
| 4BR | $2,280 | $331,598 | 0.69% | D |
U.S. Census Bureau data (2024)
The ZIP code 55395, located in Winsted, MN, presents an interesting balance between yield and stability for real estate investments, particularly for those interested in Section 8 properties.
On the yield axis, the Fair Market Rent (FMR) for FY 2024 stands at $1270. This is notably higher than the market rent of $839, indicating that Section 8 properties could provide a significant rental premium over conventional market rates. The median home value in the area is $287,567, which suggests that the property costs are relatively high, but the potential rental income from Section 8 can offset this initial investment.
Moving to the stability axis, the rental market is less robust with only 17.4% of residents being renters. This figure is low compared to typical urban areas, implying that the pool of potential tenants might be limited. Additionally, the median household income is $72,800, which is a moderate figure that supports some level of economic stability in the area. However, the lack of data on the average number of days on market (DOM) makes it difficult to assess how quickly properties might be rented out once they become available.
Given these figures, ZIP 55395 is best classified as a steady-cashflow zone rather than a high-yield/low-stability market. The higher FMR compared to the market rent ensures a solid cash flow for Section 8 properties, while the moderate income levels and limited rental population suggest a stable, albeit smaller, tenant base. Landlords and small-portfolio investors should expect consistent returns but may need to manage their expectations regarding the speed of finding new tenants.
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.