Location: Le Sueur County, MN | Metro: Le Sueur County, MN HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The classification of ZIP code 56017 hinges on analyzing its yield potential and stability metrics. On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 stands at $960, slightly below the market rent of $961. This indicates a nearly balanced market where landlords can expect to charge rents that closely match the FMR without significant loss. The median home value in this area is $380,321, which suggests that it is a relatively expensive market to enter, but the rental rates provide a competitive return.
Moving to the stability axis, the data reveals that only 15.6% of residents are renters, which is a low percentage indicating that the majority of the population owns their homes. This characteristic points towards a less stable rental market due to the smaller pool of potential tenants. Additionally, the lack of available data on the number of days on market (DOM) for rentals further underscores the uncertainty around tenant turnover and vacancy rates. However, the average household income is noted at $88,056, which is a positive sign as it implies that those who do rent have a higher likelihood of being able to afford the median rent of $961.
Given these figures, ZIP 56017 does not align with the high-yield/low-stability profile typical of a 'flip-style' market. Instead, it leans more towards a steady-cashflow zone. Despite the low percentage of renters, the competitive rental rates relative to the FMR and the strong average income suggest that once a property is rented, it is likely to remain occupied and generate consistent cash flow. However, landlords should be prepared for potentially longer periods to find tenants due to the low rental demand compared to owner-occupied housing.
Data Sources: FMR data from HUD (2027). 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.