Location: Goodhue County, MN | Metro: Goodhue County, MN
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 | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $284,303 | 0.36% | F |
| 3BR | $1,410 | $306,813 | 0.46% | F |
| 4BR | $1,700 | $378,984 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 55992, located in Zumbrota, MN, presents an interesting balance between yield and stability for real estate investments, particularly for those interested in Section 8 properties.
Firstly, let's address the yield aspect. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. This compares favorably to the local market rent of $846, indicating that there is potential for higher rental income through Section 8 contracts. However, when considering the median home value of $327,944, the yield appears moderate. The gap between FMR and market rent suggests a modest upside, but it's not enough to classify this as a high-yield market.
Moving on to stability, the data points to a somewhat stable environment. With 20.4% of residents being renters, the demand for rental properties is consistent but not overwhelming. Unfortunately, the data does not provide the number of days on market (DOM), which would be useful for assessing the speed at which properties can be leased. The median household income of $92,417 indicates a relatively stable economic base, supporting the ability of tenants to maintain their lease payments over time.
Given these figures, ZIP 55992 leans more towards a steady-cashflow zone rather than a high-yield/low-stability market. The difference between the FMR and market rent, while positive, is not significant enough to justify a high-risk investment strategy. Instead, the combination of a moderate yield and decent economic stability makes it suitable for landlords and small-portfolio investors looking for reliable returns without excessive volatility.
To summarize, the key figures driving this classification are the FMR of $970 versus the market rent of $846, along with the median income of $92,417. These factors point to a market that offers predictable cash flow and manageable risk, making it a solid choice for conservative investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.