Location: Brown 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 | $1,110 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $880 | $165,173 | 0.53% | F |
| 2BR | $1,110 | $214,756 | 0.52% | F |
| 3BR | $1,470 | $240,897 | 0.61% | D |
| 4BR | $1,760 | $305,133 | 0.58% | F |
| 5BR | $2,042 | $391,492 | 0.52% | F |
U.S. Census Bureau data (2024)
The ZIP code 56073, located in New Ulm, MN, falls within the broader context of the Brown County, MN metro area. Its Family Monthly Rent (FMR) for fiscal year 2024 is set at $960, which aligns closely with the market rent figure of $959. This indicates that the rental market in 56073 is reflective of the overall county's rental environment, suggesting neither a premium nor a discounted sub-market status.
The median home value in ZIP 56073 stands at $244,429. While this figure is not explicitly compared against the county-wide average, it can be inferred that it represents a reasonable valuation, likely falling within the mid-tier range of the Brown County housing market. The relatively low median home value suggests that there might be a mix of affordable and moderately priced homes in the area.
The renter share in 56073 is 22.1%, which is a key metric for landlords and small-portfolio investors interested in Section 8 opportunities. A higher-than-average renter share, especially when coupled with below-metro average home values, can indicate a potentially attractive market for Section 8 properties. However, without specific county-wide renter share data, this inference remains speculative.
To determine if 56073 is a value pocket, mid-tier neighborhood, or a premium sub-market, we need to consider the interplay between its FMR, market rent, home values, and renter share. Given the close alignment of FMR and market rent, and the moderate home value, it suggests that 56073 is a mid-tier neighborhood within the Brown County metro. It neither significantly outperforms nor underperforms the broader market in terms of rental rates and property values.
However, the slightly elevated renter share could signal an opportunity for landlords looking to participate in the Section 8 program. If the county-wide renter share is lower, then 56073 would stand out as a more favorable location for such investments, due to the higher demand for rental units among eligible households.
To conclude, 56073 appears to be a stable, mid-tier neighborhood within the Brown County metro, offering landlords and investors a balanced market with decent opportunities, particularly if they focus on the rental sector given the local renter share dynamics.
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.