Location: Pipestone County, MN | Metro: Murray County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56186 in Pipestone County, MN reveals several key insights for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area, as of fiscal year 2026, is set at $970. However, the market rent data is currently unavailable. This absence of market rent data makes it difficult to assess if the rent charged aligns with what the market can bear. Landlords should seek out local real estate agents or online resources to gather current market rent figures.
Regarding the affordability of acquisition, the median home value stands at $325,928. Without specific data on the number of days on market (DOM) and the percentage of homes that required a price cut to sell, it's challenging to provide a comprehensive assessment. Generally, a higher DOM and a larger share of homes needing price cuts indicate a less favorable market for acquisition. Landlords should consider these factors alongside the median home value to determine the feasibility of acquiring properties in this area.
Tenant demand is another critical factor. The ZIP code has a population of 450, with 11.1% being renters. This low renter share suggests limited demand for rental properties, which could translate into lower occupancy rates and increased vacancy periods. Landlords should be prepared for a competitive market and possibly adjust their expectations regarding rental income and occupancy.
Verdict: While the Fair Market Rent provides a benchmark at $970, the lack of current market rent data complicates the rent math evaluation. The median home value of $325,928 is a significant investment, and without detailed DOM and price-cut data, the acquisition cost cannot be fully contextualized. With only an 11.1% renter share, the demand for rental units is low, indicating a potentially challenging environment for maintaining high occupancy. Landlords considering investments in ZIP 56186 must carefully weigh these factors and prepare for a market that demands thorough research and strategic planning.
Data Sources: FMR data from HUD (2027). 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.