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 | $258,127 | 0.41% | F |
| 3BR | $1,470 | $273,658 | 0.54% | F |
| 4BR | $1,730 | $333,551 | 0.52% | F |
| 5BR | $2,007 | $390,106 | 0.51% | F |
U.S. Census Bureau data (2024)
The market in ZIP 56055, Lake Crystal, Minnesota, reflects a dynamic equilibrium between supply and demand. The Fair Market Rent (FMR) for the area, set at $990 for fiscal year 2024, indicates a level slightly above the current market rent of $848 based on the latest Census American Community Survey (ACS) data. This suggests that while rents are stable, there is room for slight growth, aligning with broader economic expectations.
The median home value of $282,474 provides insight into the overall affordability of the housing market. Given the lack of specific data on price-cut share and days on market (DOM), we cannot definitively state whether supply is currently outpacing demand or vice versa. However, the lower-than-average market rent compared to FMR implies that landlords and small-portfolio investors might find opportunities to increase rental income gradually without alienating tenants.
A key factor in understanding the long-term housing pressure is the 14.0% renter share. This relatively low percentage of renters suggests a predominantly owner-occupied market. Such a scenario typically points towards less immediate housing pressure, as fewer residents are in the rental market. Nevertheless, it also means that any shift in the balance between renters and homeowners can create significant changes in demand, potentially leading to increased rental rates if more people turn to renting due to economic factors or lifestyle changes.
The dynamics of ZIP 56055 are indicative of a market where stability is the norm, but subtle shifts can have noticeable impacts. Landlords should be prepared to adjust their strategies in response to local economic conditions and demographic trends. For small-portfolio investors, this environment offers a blend of steady returns and potential for gradual appreciation in rental values.
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.