Location: Mower County, MN | Metro: Rochester, MN 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 | $1,010 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $264,069 | 0.48% | F |
| 3BR | $1,770 | $326,736 | 0.54% | F |
| 4BR | $2,130 | $394,044 | 0.54% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Hayfield, Minnesota (ZIP 55940), is currently defined by a median home value of $311,994. This figure is critical in understanding the overall housing market conditions and the potential pricing power landlords and small-portfolio investors might have over the next 12-24 months. The lack of percentage data on reduced listings and the median days on market (DOM) suggests a stable market, where neither buyers nor sellers are under significant pressure to negotiate prices drastically. This stability implies that pricing power will likely remain balanced, allowing property owners to maintain their current pricing strategies without substantial adjustments.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 55940 in fiscal year 2024 is projected at $1110, compared to the current market rate of $995 according to the Census ACS. This indicates a positive trend for landlords, as the FMR suggests an upward movement in rental prices. Landlords can anticipate a gradual increase in rental income, which can offset any potential increases in maintenance costs or taxes. However, it's important to note that the actual rental rates may vary based on local economic factors and competition.
For long-term investors looking to hold properties in Hayfield, the appreciation thesis is grounded in the current stability of the housing market and the projected growth in rental values. The steady median home value and the increasing FMR suggest that there is potential for both capital appreciation and rental income growth. Investors should consider these trends when evaluating the long-term viability of their investments. The lack of volatility in home values and the positive outlook on rental prices indicate a favorable environment for those seeking to build a sustainable real estate portfolio in this area.
To summarize, the data points towards a market where pricing power remains relatively stable for homeowners. For landlords, the anticipated rise in rental values offers a compelling reason to invest in the area, especially for those with a long-term horizon. The combination of a stable housing market and growing rental income provides a solid foundation for investment decisions in ZIP 55940.
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.