Location: Kandiyohi County, MN | Metro: Kandiyohi 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 | $820 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $451,664 | 0.31% | F |
| 4BR | $1,700 | $536,731 | 0.32% | F |
U.S. Census Bureau data (2024)
The market in ZIP code 56288 presents a dynamic equilibrium between supply and demand, leaning slightly towards a scenario where demand might be catching up with supply. This inference is drawn from the snapshot of key metrics: the Fair Market Rent (FMR) stands at $970 for the fiscal year 2026, while the market rent based on Census ACS data is currently at $843. The low price-cut share of 0.1% indicates that landlords are not frequently needing to reduce rents to attract tenants, suggesting a relatively stable demand.
A median home value of $384,059 places this area in a segment where homeownership is a significant part of the housing landscape. However, the 15.4% renter share suggests that there is a notable segment of the population preferring or needing rental accommodation. This can be indicative of long-term housing pressure, as a higher proportion of renters often signals challenges in achieving homeownership due to financial constraints or other barriers. It also implies a continuous need for rental properties, which could support a steady income stream for landlords.
The absence of day DOM (Days on Market) data makes it challenging to assess how quickly rental units are being occupied. However, the combination of a slightly higher FMR compared to the current market rent and the low price-cut share points towards a market where landlords have some pricing power. This situation is favorable for maintaining or slightly increasing rental rates over time, provided that the local economy supports such adjustments.
In summary, ZIP 56288 appears to be a market where the balance of supply and demand is tipping towards a slight undersupply, especially considering the relatively high FMR and low price-cut share. The significant renter share suggests ongoing housing pressures, which can translate into a robust rental market for landlords and small-portfolio investors who are willing to cater to the needs of this demographic.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.