Location: Mower County, MN | Metro: Freeborn 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 | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $840 | $87,848 | 0.96% | C |
| 2BR | $1,100 | $155,073 | 0.71% | D |
| 3BR | $1,470 | $198,074 | 0.74% | D |
| 4BR | $1,480 | $273,154 | 0.54% | F |
| 5BR | $1,717 | $372,899 | 0.46% | F |
U.S. Census Bureau data (2024)
The rental market in ZIP code 55912, located in Austin, MN, presents a nuanced landscape for both renters and landlords. Given the median income of $70,177, it's crucial to assess whether a typical household can realistically afford the market rate rent of $969 per month, known as the ZORI (Zillow Rent Index).
To understand the affordability, we must consider the financial burden this places on a household. Assuming a standard guideline that housing costs should not exceed 30% of a household's income, a monthly rent of $969 represents approximately 41% of the median monthly income ($5,848). This indicates a significant strain on the average household budget.
Comparatively, the Fair Market Rent (FMR) for the metro area, set at $1,070 for fiscal year 2026, is higher than the market rate but still poses a challenge given the median income. The FMR is used as a benchmark for the Housing Choice Voucher program, commonly known as Section 8, which subsidizes rent for low-income families.
Austin, MN has a population of 29,632, with 26.0% being renters. This means there are around 7,704 renters in the area. The affordability gap between the median income and the ZORI suggests that many households may struggle to pay market rates without assistance, leading to increased competition among landlords for tenants who can afford to pay in cash.
Landlords considering their strategy in this environment should be aware of the potential benefits of accepting Section 8 vouchers. While the voucher payment standard is slightly above the market rate, it ensures a steady stream of reliable income. Accepting vouchers can also help landlords fill vacancies faster, given the financial constraints many potential renters face.
In conclusion, the affordability gap in Austin, MN, highlights the importance of considering Section 8 vouchers as a viable option. Landlords who accept vouchers can tap into a larger pool of tenants, potentially reducing vacancy rates and ensuring a more stable income. For those focusing solely on cash-paying tenants, the challenge of finding individuals capable of paying the market rate without assistance will likely persist.
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.