Location: Waseca County, 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 | $246,733 | 0.43% | F |
| 3BR | $1,470 | $252,315 | 0.58% | F |
| 4BR | $1,730 | $281,929 | 0.61% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $960 for ZIP 56065 (Mapleton, MN) can cover the mortgage on a $251,441 home. To address this concern, let's consider the recent trend in mortgage rates. As of a recent report, the average rate on the popular 30-year fixed mortgage has surged to 6.28%. Using this rate, the monthly mortgage payment for a $251,441 home with a 20% down payment would be approximately $1,250. This means that the FMR of $960 would not fully cover the mortgage payment.
The second objection could be the low renter demand at 17.6%. However, it's important to note that while this percentage is relatively low, it still represents a significant number of potential tenants in the area. Low renter demand does pose a risk, but it also indicates less competition among landlords, which can be advantageous when setting rental prices.
Lastly, an investor might wonder if voucher programs will keep pace with market rents of $802. While the data doesn't provide a direct comparison between voucher increases and market rent hikes, it's crucial to understand that voucher amounts are typically adjusted annually based on federal guidelines. If the FMR is set to increase to $960 in FY 2024, it's reasonable to expect that voucher amounts will be adjusted accordingly, though they may not always match the exact market rate.
In summary, while the FMR of $960 in ZIP 56065 may not fully cover the mortgage payment on a $251,441 home at current rates, the low renter demand percentage can still be managed effectively. Vouchers are likely to adjust with market conditions, though they may lag behind actual market rents.
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.