Location: Martin County, MN | Metro: Faribault County, MN
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 | $770 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $261,316 | 0.55% | F |
| 4BR | $1,460 | $344,790 | 0.42% | F |
U.S. Census Bureau data (2024)
14.2% of residents in ZIP 56039 are renters, indicating a moderate demand for rental properties. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,050, which is significantly higher than the reported market rent of $688 based on Census ACS data. This discrepancy suggests that there is room for price increases in the rental market, aligning with the higher FMR standards.
$346,472 is the median home value in the area, which is a substantial figure but must be considered alongside the median income of $84,342. Given these numbers, it's evident that homeownership might be challenging for many residents, further supporting the importance of rental properties in this market.
The lack of specific data on days on market (DOM) and the percentage of homes that have been price-cut indicates a stable housing market with little fluctuation. However, the disparity between the FMR and the actual market rent points towards an opportunity for landlords who can provide quality rentals at or near the FMR level.
Investors should note that the $1,050 FMR provides a benchmark for rental pricing that can help ensure profitability while still being accessible to tenants. Given the $688 average market rent, raising rents to the FMR level could increase cash flow, though it would require offering properties that justify the higher cost.
With a median income of $84,342, tenants qualifying for Section 8 assistance will likely need the subsidy to cover the $1,050 FMR. This makes Section 8 a viable option for landlords looking to fill units in ZIP 56039, as the combination of tenant payments and government subsidies can meet the higher rental standards.
In conclusion, ZIP 56039 presents a balanced opportunity for landlords and small-portfolio investors. The high FMR relative to the market rent and median income supports the inclusion of Section 8 tenants as a means to achieve fair rental rates. The verdict on Section 8 participation in this area is positive, given the potential for stable occupancy and reasonable returns.
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.