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 | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,650 | $222,624 | 0.74% | D |
U.S. Census Bureau data (2024)
The ZIP code 56090 presents several challenges for landlords considering participation in the Section 8 program. Firstly, tenant turnover is a significant concern due to the disparity between the market rent of $783 and the Fair Market Rent (FMR) of $1190 for FY 2024. This gap can lead to higher turnover rates as tenants may struggle to afford the increased rent, creating instability in the rental market.
Vacancy exposure is another issue, exacerbated by the lack of data on days on market (DOM). Without this information, it's difficult to predict how long properties might remain vacant, increasing financial pressure on landlords. Additionally, the typical home value of $223,483 combined with a median income of $73,750 suggests that many homeowners may be financially stretched, potentially leading to deferred maintenance on rental properties. This can result in higher repair costs and maintenance issues for landlords over time.
Despite these risks, there are mitigating factors. The renter share in ZIP 56090 stands at 13.5%, indicating a relatively high concentration of renters. High renter density typically translates into higher demand for rental vouchers, which can provide a steady stream of tenants who are able to pay their rent consistently through government assistance. This stability can offset some of the risks associated with higher turnover and vacancy rates.
In conclusion, the risks of participating in the Section 8 program in ZIP 56090 are moderate. While there are concerns about tenant turnover and deferred maintenance, the high renter density offers a level of security that makes the investment worthwhile for those willing to manage these risks effectively.
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.