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 | $1,060 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,060 | $294,513 | 0.36% | F |
| 3BR | $1,470 | $309,964 | 0.47% | F |
| 4BR | $1,730 | $351,313 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 56037, located in Good Thunder, MN, within Blue Earth County, stands out for several reasons. With a population of 1,374 residents, only 11.5% of whom are renters, it reflects a community where homeownership is prevalent. The median income in this area is notably high at $78,750, indicating a financially stable demographic. Furthermore, the median home value of $326,601 suggests that property values are robust, likely due to the low rental rate and high income levels.
When examining the voucher economics, the Fair Market Rent (FMR) for ZIP 56037 in fiscal year 2024 is set at $960. This figure is significantly higher than the market rent, which stands at $758 according to Census ACS data. This discrepancy means that landlords can potentially receive higher rents through Section 8 vouchers compared to the local market rates, making participation in the program attractive.
The data signature for ZIP 56037 reads as stable. High median income levels and strong median home values indicate a community that is financially secure and has little incentive to change its housing patterns. Additionally, the low percentage of renters supports this stability, as it implies that most residents own their homes and are unlikely to transition into the rental market anytime soon. The higher FMR compared to market rates also contributes to the stability, as it ensures that landlords who accept Section 8 vouchers will be fairly compensated.
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.