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 | $283,282 | 0.45% | F |
| 3BR | $1,770 | $308,770 | 0.57% | F |
| 4BR | $2,130 | $366,108 | 0.58% | F |
| 5BR | $2,471 | $463,446 | 0.53% | F |
U.S. Census Bureau data (2024)
Stewartville, MN, with ZIP code 55976, is a residential area characterized by a modest population of 8,509 individuals. The neighborhood has a relatively low percentage of renters at 16.1%, indicating that it primarily consists of homeowners. The median household income in Stewartville is strong at $87,330, which suggests a financially stable community. The median home value stands at $330,935, reflecting a middle to upper-middle-class living environment.
When it comes to rental economics, the Fair Market Rent (FMR) for Stewartville is set at $1,110 for fiscal year 2024, while the actual market rent as per the Census ACS is $1,086. This slight discrepancy between FMR and market rent could present an opportunity for hands-on value-add buyers who can potentially capitalize on the difference by improving property values or increasing rents within the guidelines.
The place fits well for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the local economy and the existing demand for rental properties make Stewartville a reliable location for Section 8 investments. However, for those inclined towards a more active role, the potential to increase rental income slightly above the current market rate, while still being within the FMR, provides a chance to enhance returns through strategic management and property improvements.
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.