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 | $1,350 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $318,094 | 0.51% | F |
| 3BR | $2,260 | $320,462 | 0.71% | D |
| 4BR | $2,310 | $361,996 | 0.64% | D |
U.S. Census Bureau data (2024)
ZIP code 56024, located in Eagle Lake, MN, falls within the Mankato, MN MSA metro area. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1,520. Comparatively, the average market rent across typical Mankato, MN MSA ZIP codes is around $1,400. This indicates that Eagle Lake's rental rates are slightly above average but still within a reasonable range.
The median home value in ZIP 56024 is $339,643, which is notably lower than the metro-wide median home value. This suggests that Eagle Lake is likely a value pocket within the larger Mankato MSA, offering homeownership opportunities at a lower cost relative to the surrounding area.
A key point of interest is the renter share, which stands at 32.6%. This percentage is higher than the typical Mankato MSA ZIP codes, indicating a significant proportion of renters in Eagle Lake. When combined with the below-average home values, it strongly suggests that this ZIP code could be an attractive location for Section 8 properties. The higher renter share coupled with lower home values often signifies a sweet spot for Section 8 investments, as it can attract tenants who benefit from subsidized housing programs.
While the FMR is slightly elevated at $1520, this is still manageable given the lower median home value. For landlords and small-portfolio investors looking to capitalize on the demand for affordable housing, ZIP 56024 presents a viable option. It is neither a mid-tier neighborhood nor a premium sub-market within the Mankato MSA; rather, it stands out as a value pocket with potential for stable rental income due to the substantial renter population.
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.