Location: Le Sueur 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 | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 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 | $1,120 | $267,140 | 0.42% | F |
| 3BR | $1,550 | $287,465 | 0.54% | F |
| 4BR | $1,730 | $328,885 | 0.53% | F |
| 5BR | $2,007 | $395,434 | 0.51% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 56082, located in Saint Peter, MN, hinges on analyzing both its yield potential and stability factors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,130, while the market rent stands at $1,470. This indicates a strong rental market where landlords can potentially charge above the FMR, enhancing their yield.
The median home value in the area is $294,472, which provides a baseline for investment property values. However, the key metric for yield is the rental income, and here the market rent significantly exceeds the FMR, suggesting that landlords can achieve higher yields if they manage to secure tenants willing to pay the market rate.
Moving onto stability, the ZIP code has a substantial 30.3% of residents who are renters, indicating a healthy demand for rental properties. Unfortunately, the data does not provide the number of days on the market (DOM), which would give insight into how quickly rental units can be filled. However, the median household income is listed at $71,456, which supports the ability of residents to afford higher rents, contributing to market stability.
Given these metrics, ZIP 56082 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The significant gap between the FMR and market rent suggests good earning potential, but the relatively high percentage of renters and median income levels point to a stable environment where consistent cash flow is likely. While there's opportunity for higher yields, the underlying economic conditions suggest a balanced approach to investment, focusing on long-term stability alongside yield.
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.