Location: Freeborn County, MN | Metro: Freeborn 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 | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $236,584 | 0.58% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56043, located in Freeborn County, MN, reveals key insights for landlords and small-portfolio investors.
Regarding the rent math, it does not work based on the provided data. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $980. However, there is no available market rent figure to compare against, indicating a potential lack of data or a need for further investigation into local rental rates.
In terms of acquisition affordability, the median home value stands at $207,849, which suggests that purchasing property in this ZIP code could be financially viable for investors. The absence of days on market (DOM) and percentage of homes needing price cuts indicates either a stable housing market or a lack of recent sales data. This implies that once acquired, properties might hold their value well without significant markdowns.
Evaluating tenant demand, the population of 423 residents includes a 11.4% renter share. This relatively low proportion of renters means that the pool of potential tenants is limited, which could affect occupancy rates and the ability to consistently lease properties at desired rents.
A verdict on ZIP 56043 for investment purposes would conclude that while the acquisition cost appears reasonable, the limited data on market rents and tenant demand pose challenges. Investors should proceed with caution, ensuring they have a clear understanding of local rental trends and the specific needs of the community to make informed decisions about potential returns and occupancy risks.
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.