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 |
|---|---|---|---|---|
| 3BR | $1,470 | $295,576 | 0.5% | F |
| 4BR | $1,730 | $349,833 | 0.49% | F |
| 5BR | $2,007 | $403,946 | 0.5% | F |
U.S. Census Bureau data (2024)
ZIP code 56074, located within the Mankato, MN MSA, presents a unique profile compared to other ZIP codes in the area. The Fair Market Rent (FMR) for 56074 in fiscal year 2024 is set at $1020, which exceeds the market rent of $853. This suggests that rental properties in 56074 could potentially attract higher rents due to government-set guidelines, making it an attractive location for landlords.
The median home value in 56074 stands at $321,610, which is likely above the average home value in typical Mankato, MN MSA ZIP codes. However, this figure alone does not necessarily indicate a premium sub-market; it depends on the overall distribution of home values across the MSA. If the majority of ZIP codes have lower home values, then 56074 would be considered a premium sub-market. Otherwise, it could be seen as a mid-tier neighborhood.
A noteworthy aspect of 56074 is its 22.6% renter share. This percentage is relatively high, indicating a significant portion of residents who are renters rather than homeowners. When combined with the below-metro average home values, this suggests that 56074 might be a sweet spot for Section 8 housing, as it offers a balance between affordable home ownership and a substantial number of potential renters eligible for government assistance.
To determine if 56074 is a value pocket, further analysis would be required to understand how the FMR compares to the actual rents charged in the area. If landlords can charge close to the FMR without significantly exceeding market rents, then 56074 could indeed be a value pocket where both landlords and Section 8 tenants find reasonable terms.
In summary, ZIP code 56074 appears to offer a mix of characteristics that make it appealing for different types of real estate investments within the Mankato, MN MSA. Its higher FMR and substantial renter share, coupled with median home values, position it as a promising area for landlords and small-portfolio investors looking to leverage government-assisted housing programs.
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.