Location: Mower County, MN | Metro: Fillmore County, 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 | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $211,942 | 0.64% | D |
| 4BR | $1,360 | $275,795 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 55951 presents an interesting mix of yield and stability that can inform investment decisions for landlords and small-portfolio investors.
On the yield axis, the potential for higher returns is evident. The Fair Market Rent (FMR) for ZIP 55951 in fiscal year 2024 is set at $970. This is notably above the market rent of $746, suggesting a significant opportunity to capture additional rental income. However, when compared to the median home value of $209,002, the yield appears moderate, given the relatively high purchase cost of properties in this area.
Moving to the stability axis, the picture becomes more nuanced. Only 17.2% of the population are renters, which indicates a lower demand for rental housing relative to other areas. This could translate into less consistent cash flow, especially if the local economy experiences fluctuations. Additionally, the average household income in the area is $61,131, which is a critical figure for assessing the financial health of potential tenants. While this income level is reasonable, it does not suggest a particularly robust tenant base that would guarantee high occupancy rates.
The lack of data on days on market (DOM) makes it challenging to fully assess the stability of the rental market. Typically, a lower DOM would indicate a quicker turnover rate and thus a more stable market, but without this figure, we cannot make a definitive call on how quickly units might be rented out.
Given these figures, ZIP 55951 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The discrepancy between FMR and market rent suggests some upside potential, but the relatively low percentage of renters and the absence of DOM data temper expectations for rapid property turnover. For investors seeking reliable, long-term rental income, this ZIP code offers a balanced opportunity, with a focus on moderate yields and manageable stability risks.
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.