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 | $880 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,470 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,470 | $338,486 | 0.43% | F |
| 4BR | $1,730 | $362,371 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 56021, with a population of 1,108, is characterized by a relatively low percentage of renters at 14.3%. This suggests that it is predominantly a homeowner-dominated area rather than a renter-heavy zone. The median household income stands at $96,563, which provides a baseline for assessing the affordability of rental units in the market.
The current market rent in ZIP 56021 is $1,053. To put this into perspective, the typical rent eats up approximately 11.7% of the local median income. This calculation is derived from dividing the monthly rent by the annual median income and then multiplying by 12 to get the percentage of income spent on rent. Specifically, ($1,053 * 12) / $96,563 = 11.7%. This indicates that renting is relatively affordable compared to the average income in the area.
The Fair Market Rent (FMR) for ZIP 56021 is set at $1,080 for fiscal year 2024. This figure is slightly higher than the current market rent, suggesting that landlords might have some flexibility in pricing their units without exceeding the FMR limit for Section 8 tenants. However, it also implies that there could be a slight challenge in finding properties that fit within the voucher limits, especially if market rents rise closer to or above the FMR.
In terms of the tenant profile, landlords in ZIP 56021 can expect a mix of individuals and families who are likely to rely on Section 8 vouchers due to the area's higher median income. Given the relatively low percentage of renters, competition for rental properties among those using vouchers could be moderate. Landlords should prepare for tenants who may require assistance with rent but who are also part of a community with a strong economic foundation.
To summarize, while ZIP 56021 has a lower concentration of renters, making it less of a prime target for those seeking high voucher utilization, it still offers opportunities for landlords willing to cater to a niche market of Section 8 tenants. The affordability of rent relative to income supports a stable rental environment, though landlords must remain mindful of the FMR cap when setting their rental rates.
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.