Location: Mower County, MN | Metro: Mower 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 | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $229,794 | 0.59% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 55918 presents a unique scenario for landlords and small-portfolio investors, especially when considering the median home value of $203,837. This figure, combined with the fact that there is currently no percentage of listings being reduced and an unspecified median days on market (DOM), suggests a stable market with little pressure from distressed sellers. Landlords can maintain their pricing power without significant adjustments over the next 12-24 months.
On the rental side, the Forward Monthly Rent (FMR) for the metro area in fiscal year 2026 is projected at $970, while the current market rate stands at $813 according to the Census ACS. This gap indicates potential upward pressure on rental rates as the market adjusts to meet future forecasts. Investors should expect a gradual increase in rental income as the market aligns with the FMR, providing a steady stream of cash flow for properties held in ZIP 55918.
For long-term holding strategies, the setup implies a moderate appreciation thesis. The stability in the median home value, coupled with the potential for rental rate increases, supports the idea that property values will likely follow a similar trend. However, the lack of specific DOM data and the percentage of listings reduced means that the pace of appreciation is uncertain. It is reasonable to anticipate a slow but steady growth in property values, driven by increasing rental demand and the natural progression of the housing market.
To summarize, the current median home value, the absence of price reductions among listings, and the unspecified median DOM indicate a resilient market where landlords and investors can maintain their pricing power. The disparity between the FMR and current market rental rates signals an opportunity for rental income growth, which could translate into property value appreciation over time. This market condition favors a buy-and-hold strategy, with realistic expectations for moderate gains rather than rapid appreciation.
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.