Location: Jackson County, MN | Metro: Cottonwood County, MN
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 | $780 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $123,935 | 0.86% | C |
| 3BR | $1,480 | $177,291 | 0.83% | C |
| 4BR | $1,550 | $224,620 | 0.69% | D |
U.S. Census Bureau data (2024)
In Windom, Minnesota, the real estate market signals a robust environment for landlords and small-portfolio investors. With a median home value at $167,455, the area remains accessible to a broad range of buyers, which supports steady demand. The fact that only 0.1% of listings have seen reductions indicates strong seller pricing power, suggesting that homes are selling close to their asking prices. This scenario typically points to a market where home values are unlikely to drop significantly, thereby providing stability for long-term investments.
The median days on market (DOM) being listed as 'N/A' suggests either an exceptionally quick turnover of properties or a limited sample size of recent sales. Either way, it implies that homes are moving quickly once they come onto the market, reinforcing the idea of a tight housing market. Quick sales often correlate with higher buyer interest and can be indicative of a market where values may appreciate further if demand persists or increases.
On the rental side, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $1,040, while the current market rent stands at $804. This gap between the expected FMR and the current market rate signals potential upward pressure on rents. As the cost of living and economic conditions evolve, landlords in Windom can anticipate the possibility of increasing rental rates to align with future FMRs, enhancing their cash flow and investment returns.
For long-hold investors, the setup in Windom implies a realistic appreciation thesis. Given the low percentage of price reductions and the quick sale dynamics, the market is poised for value retention, if not gradual appreciation. The disparity between current market rents and future FMRs provides a compelling argument for maintaining property values, as rising rents can support higher home valuations through increased demand and perceived property worth. However, the appreciation will likely be modest and incremental rather than explosive, reflecting the stable nature of the local market.
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.