Location: Mankato, MN | Metro: Mankato, MN MSA
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 | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $245,934 | 0.44% | F |
| 3BR | $1,480 | $286,046 | 0.52% | F |
| 4BR | $1,730 | $356,003 | 0.49% | F |
| 5BR | $2,007 | $479,656 | 0.42% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $970 for zip code 56003 in North Mankato, MN, landlords and small-portfolio investors can expect a competitive rental environment given the Census ACS reported market rent of $975. This slight premium suggests strong demand, especially considering the median home value stands at $319,938, indicating a stable and potentially growing housing market. The 28.7% share of renters in the area reflects a significant portion of the population seeking rental properties, making it a viable investment opportunity.
Average days on market (DOM) of 43 indicates swift turnover, which is beneficial for property management efficiency. However, the low price-cut share of 0.2% suggests that properties are being priced accurately, reducing the need for adjustments. Coupled with a median income of $82,538, tenants should have the financial capacity to meet the market rents without much difficulty, assuming a reasonable debt-to-income ratio.
The data paints a picture of an area where rental properties are well-positioned to attract tenants willing to pay close to market rates. The proximity of the FMR to the actual market rent means that properties participating in the Section 8 program can still be competitive while providing affordable housing options. For landlords, the relatively high median home value and strong tenant demand imply potential for steady cash flow and appreciation over time.
In conclusion, the Section 8 program remains a solid option for investors in North Mankato, MN, with the ability to secure tenancy quickly and maintain property values. The verdict: Section 8 participation is financially viable and strategically sound in zip code 56003.
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.