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 | $274,210 | 0.5% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 55926 in Mower County, MN metro, reveals a favorable rental environment for voucher tenants. The HUD Fair Market Rent (FMR) for the area is set at $980 per month for fiscal year 2026, which is notably higher than the average market rent of $818 according to Census ACS data. This indicates that voucher tenants will cashflow at the FMR level, providing a reliable and positive financial outlook for landlords.
To further assess the investment potential, consider the median home value in ZIP 55926, which stands at $283,961. Using this figure, we can calculate a rent-to-price ratio of approximately 0.35%, suggesting that rental income represents a small portion of the property's total value. However, this low ratio does not necessarily detract from the investment appeal, as it can indicate a stable housing market with strong equity positions.
In terms of the days on market (DOM) and the percentage of price cuts, these metrics are not available for the current analysis. Nonetheless, given the positive cashflow dynamics, it's reasonable to infer that properties in this area may be less prone to extended listing times or significant price reductions when compared to areas where market rents are closer to the FMR.
The strongest angle for investors in ZIP 55926 is cashflow. With voucher tenants paying above the market rate, landlords can expect consistent and positive financial returns without the need to rely on premium unit upgrades or extensive renovations. This makes the area particularly attractive for those looking to secure steady income streams from their rental investments.
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.