Location: Sibley County, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
U.S. Census Bureau data (2024)
The rent math in ZIP 56044 does not work favorably for landlords. The Fair Market Rent (FMR) for the area, set at $1270 for fiscal year 2024, significantly exceeds the average market rent reported by the Census ACS, which is $964. This discrepancy suggests that landlords might struggle to justify higher rents to tenants based on current market conditions.
Acquisition in this ZIP code is moderately affordable. The median home value stands at $358,555. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts indicates an incomplete picture of the local real estate market dynamics. Landlords should proceed with caution when considering property acquisitions here, given the limited information on how quickly properties sell and whether they require price adjustments.
Tenant demand in ZIP 56044 is relatively low. With a total population of 2,370, only 16.8% are renters. This translates to approximately 398 potential rental households, which is a small number relative to the overall population. Such a low renter share can make it challenging to find consistent tenants, especially if the area has a high owner-occupancy rate.
In summary, ZIP 56044 presents a challenging environment for landlords and small-portfolio investors due to the mismatch between FMR and market rent, the moderate affordability of acquisitions, and the low tenant demand. The FMR is too high compared to what the market supports, indicating a need for realistic pricing strategies. Additionally, the scarcity of data on DOM and price-cut percentages adds uncertainty to the acquisition process. Given these factors, the area may not be a strong investment choice unless other mitigating factors such as lower vacancy rates or unique property types offset these disadvantages.
Data Sources: FMR data from HUD (2027). 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.