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 | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $203,884 | 0.51% | F |
| 3BR | $1,390 | $245,322 | 0.57% | F |
| 4BR | $1,390 | $378,883 | 0.37% | F |
U.S. Census Bureau data (2024)
The real estate market in Grand Meadow, MN (ZIP 55936) presents a nuanced picture for landlords and small-portfolio investors. With a median home value at $263,367, the area reflects a stable residential base. However, the absence of data on the percentage of listings that have been reduced and the median days on market (DOM) indicates a potentially tight or less volatile market. This suggests that homeowners are either maintaining their asking prices or the market is experiencing a low volume of transactions, both scenarios implying a strong pricing power for sellers over the next 12-24 months.
On the rental side, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $970, while the current market rate based on Census ACS data stands at $933. This signals a slight upward trend in expected rental values, which could provide landlords with an opportunity to gradually increase rents in line with the FMR projections. The gap between the FMR and the current market rate suggests that there is room for growth without necessarily causing significant tenant turnover, assuming the increases are reasonable and consistent with broader market conditions.
For long-term hold investors, the setup in Grand Meadow implies a realistic appreciation thesis. The steady median home value and the projected increase in rental rates suggest that property values are likely to remain stable or even appreciate slightly. This stability can be attributed to the local economy's resilience and the potential for gradual growth in housing demand. However, it's important to note that the lack of specific data on listing reductions and DOM means that the exact pace of appreciation cannot be precisely quantified. Nonetheless, the combination of a solid median home value and positive rental trends supports a conservative but optimistic outlook for property appreciation in the coming years.
To summarize, the median home value and the projected rental rates in Grand Meadow, MN, indicate a market where pricing power remains with the sellers. Landlords can expect a modest increase in rental income, aligning with the FMR, and long-term investors should anticipate a stable property value environment, conducive to gradual capital 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.