Location: Redwood County, MN | Metro: Redwood County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
The classification of ZIP code 56293 hinges on its financial metrics, specifically focusing on rental yield and market stability. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 stands at $970, which is notably higher than the market rent of $650. This indicates a potential for higher rental yields if properties are managed under Section 8 programs.
To determine stability, we look at several factors: the percentage of renters, the average days on market (DOM), and median household income. ZIP 56293 has 18.6% of its population renting, which is a moderate figure suggesting neither an extremely stable nor volatile rental market. The median household income in the area is $67,396, indicating a relatively stable economic environment where tenants are likely to have sufficient income to meet their rent obligations.
However, the lack of data on the average days on market (DOM) makes it challenging to fully assess the liquidity and demand for rental properties in this area. If the DOM were significantly longer than the national average, it would suggest lower demand and potentially less stability. Conversely, shorter DOM periods indicate strong demand and stability.
Based on the available data, ZIP 56293 appears to be a market that offers a balance between yield and stability. It is not a high-yield/low-stability flip-style market, as the percentage of renters is moderate and there's no indication of rapid turnover or extreme volatility. Nor is it a steady-cashflow zone, given the discrepancy between the FMR and market rent, which suggests some level of fluctuation in rental pricing.
The key figures driving this assessment are the FMR of $970 versus the market rent of $650, and the median income of $67,396. These point towards a market that could provide decent yields when properties are leased through Section 8, while also maintaining a reasonable degree of stability due to the moderate renter percentage and solid median income levels.
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.