Location: Goodhue 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 | $295,906 | 0.43% | F |
| 3BR | $1,770 | $386,737 | 0.46% | F |
| 4BR | $2,130 | $411,129 | 0.52% | F |
| 5BR | $2,471 | $488,370 | 0.51% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 55963, Pine Island, MN, reveals several key points for landlords and small-portfolio investors. First, regarding the rent math, the Federal Market Rent (FMR) set at $1,110 for FY 2024 aligns closely with the market rent of $1,117 as reported by the Census ACS. This indicates that rental income should be sufficient to cover expenses associated with Section 8 properties.
Second, on the affordability of acquisition, the median home value in ZIP 55963 stands at $375,763. With a day DOM (Days on Market) listed as N/A and a mere 0.2% of homes requiring price cuts, it suggests that acquiring a property in this area is relatively straightforward, though not necessarily inexpensive. The lack of data on days on market could imply a stable market with consistent sales activity.
Third, concerning tenant demand, the population of Pine Island is 5,244, with 16.4% of residents being renters. This percentage translates to approximately 857 potential tenants in the area. While the renter share is modest, it provides a steady base of potential Section 8 tenants given the alignment between FMR and market rent.
In conclusion, ZIP 55963 presents a balanced opportunity for Section 8 investments. The close match between FMR and market rent ensures viable rental income. Although the median home value is high, the stable market conditions make acquisitions feasible. Tenant demand is present but limited; however, the alignment of rents supports a manageable risk profile for landlords and small-portfolio investors looking to enter or expand in this market.
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.