Location: Rochester, 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 | $1,110 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,240 |
| 5 Bedrooms | $2,598 |
| 6 Bedrooms | $2,910 |
| 7 Bedrooms | $3,143 |
| 8 Bedrooms | $3,300 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $320,970 | 0.42% | F |
| 3BR | $1,860 | $315,477 | 0.59% | F |
| 4BR | $2,240 | $372,096 | 0.6% | D |
| 5BR | $2,598 | $448,503 | 0.58% | F |
U.S. Census Bureau data (2024)
In Kasson, Minnesota (ZIP 55944), the real estate market is currently characterized by a median home value of $323,995. This figure is indicative of a stable housing environment where property values have maintained consistency. The fact that only 0.1% of listings have been reduced signals a strong seller's market, suggesting that homeowners can expect to retain significant pricing power over the next 12 to 24 months.
The median days on market (DOM) being listed as N/A could imply a brisk pace of sales, further supporting the notion of a robust market. In such a scenario, landlords and small-portfolio investors should anticipate continued demand for rental properties, given the tight inventory and high desirability of homes in the area.
On the rental side, the Fair Market Rent (FMR) for ZIP 55944 in fiscal year 2024 is projected to be $1,110, while the current market rate stands at $1,089 according to the Census ACS. This suggests a slight upward trend in rental prices, which aligns with the stable to slightly appreciating home values. Landlords can reasonably expect modest rent increases as the market moves toward the FMR benchmark.
For long-term hold investors, the setup in Kasson points to a realistic appreciation thesis. With home values holding steady and minimal reductions in listing prices, there is little indication of a market downturn. The consistent increase in FMR also supports the idea that rental income will likely grow over time, making Kasson an attractive location for those looking to build equity through property ownership and generate reliable cash flow through rentals.
Investors should consider the broader economic context and local job market trends to ensure that the underlying fundamentals support sustained demand. However, based on the current data, the real estate landscape in Kasson appears favorable for maintaining and potentially enhancing property values and rental incomes.
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.