Location: Waseca County, MN | Metro: Mankato, MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
U.S. Census Bureau data (2024)
The rent math in ZIP code 56068, located in Waseca County, MN, presents a mixed scenario. The Fair Market Rent (FMR) for the area is set at $960 for fiscal year 2024, which is notably lower than the market rent of $1,012 reported by the Census ACS. This indicates that landlords receiving Section 8 vouchers might struggle to cover their costs fully without additional subsidies or finding tenants willing to pay the difference between the voucher amount and the market rate.
Acquisition affordability is a key consideration for potential investors. With a median home value of $207,173, the area offers an entry point into homeownership that is relatively accessible. However, the lack of data on days on market (DOM) and the percentage of homes that have been discounted in price suggests limited insights into the current state of the housing market's liquidity and pricing dynamics. This could be due to a low volume of sales activity, making it challenging to gauge typical market behavior.
Tenant demand in ZIP 56068 is modest but present. The total population stands at 1,041, with 21.3% being renters. This means there are approximately 220 potential rental households in the area. While the number is not large, it does provide a stable base for landlords and small-portfolio investors who can manage properties efficiently and cater to the local needs.
In summary, while the rent math poses challenges due to the disparity between FMR and market rent, the acquisition cost remains reasonable. Tenant demand is steady, albeit limited by the small population size. For landlords and small-portfolio investors, success in ZIP 56068 will hinge on the ability to manage costs effectively and possibly supplement income through non-voucher rentals or other means. The area offers a niche opportunity for those willing to navigate the specific conditions of the local market.
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.