Location: Kandiyohi County, MN | Metro: Kandiyohi County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56281 reveals a market that is moderately positioned on both the yield and stability axes. On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,020, while the market rent stands at $983. This suggests that rental properties in this ZIP code can expect to generate slightly above average rental income compared to the broader metro area. However, the median home value of $229,750 indicates a relatively affordable property market, which could affect the potential for high capital appreciation.
Moving to the stability axis, the ZIP code has a renter population that comprises 13.8% of the total residents. While this figure is low, it does not provide a complete picture without additional context such as the number of days on market (DOM), which is unfortunately not available. The median household income of $106,667 is a positive indicator, suggesting that tenants in this area have a higher capacity to meet their rental obligations, thus potentially reducing the risk of default.
Based on these figures, ZIP 56281 is best classified as a steady-cashflow zone. The rental income potential, as indicated by the FMR and market rent figures, aligns well with the goal of generating consistent cash flow. Additionally, the higher median household income supports the likelihood of stable tenant payments over time. However, the low percentage of renters and the lack of DOM data suggest that the market might not be as robust for high-turnover, quick-profit strategies typically associated with flipping properties. Landlords and small-portfolio investors should focus on long-term rental investments rather than short-term speculative gains in this area.
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.