Location: Rice County, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
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 | $1,130 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $2,070 |
| 4 Bedrooms | $2,330 |
| 5 Bedrooms | $2,703 |
| 6 Bedrooms | $3,027 |
| 7 Bedrooms | $3,269 |
| 8 Bedrooms | $3,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,550 | $288,510 | 0.54% | F |
| 3BR | $2,070 | $388,301 | 0.53% | F |
| 4BR | $2,330 | $470,310 | 0.5% | F |
| 5BR | $2,703 | $521,944 | 0.52% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 56071, New Prague, MN, presents a nuanced scenario for both landlords and small-portfolio investors. The median home value stands at $419,149, indicating a stable housing market with a relatively high baseline for property values. This stability is further reinforced by the fact that only 0.1% of listings have reduced their prices, suggesting that sellers maintain significant pricing power. In essence, the market shows little willingness to compromise on price, which could imply strong demand or high confidence in the property's value.
The median days on market (DOM) being listed as N/A suggests either a very tight market where homes sell quickly, often before a DOM figure can be established, or that there is insufficient data to provide an accurate DOM figure. Either way, this signals a robust market environment where inventory is likely low and competition among buyers is high, further supporting the notion of strong seller pricing power.
On the rental side, the Fair Market Rent (FMR) for ZIP 56071 is projected at $1,420 for fiscal year 2024, compared to the current market rate of $1,360 according to Census ACS data. This indicates a potential increase in rental income for landlords over the next year, aligning with the expectation of rising costs in line with inflationary pressures and increasing demand for rental properties.
For long-term hold investors, the setup in ZIP 56071 implies a realistic appreciation thesis. The combination of a stable median home value, minimal price reductions, and a projected increase in rental rates suggests that property values are unlikely to decline and may continue to rise, albeit gradually. The rental market's upward trajectory supports the idea that owning properties here can generate steady cash flow and asset appreciation, making it a viable investment strategy for those looking to capitalize on the local real estate trends without expecting rapid growth.
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.