Faribault, MN Housing Market
AI-powered market intelligence for the Faribault-Northfield, MN metro area.
PropertyIQ Scores
Faribault, MN Market Analysis
Market Overview
Faribault’s housing market presents a moderately balanced profile, reflected in a PropertyIQ Score of 73 out of 100. The median home value of $355,932 is essentially in line with the Minnesota state average of $356,066, indicating that home prices are not stretched relative to the broader state. However, the market’s income base is slightly below the state benchmark: median household income in Faribault is $82,792, compared with $87,556 statewide. That gap, combined with a rent index of $1,601 versus the state average of $1,235, suggests a local rental market that is meaningfully stronger than the state norm, even as ownership affordability is somewhat tighter than the state average would imply.
The score is supported by a 12-month home value momentum of 7.04%, meaning prices have appreciated over the past year. At the same time, the 3-month momentum is -0.43%, and 18.5% of listings have had a price cut, which signals some cooling in the near term. With a median of 39 days on market and 199 homes for sale, the market is not showing the extreme speed of a hot seller’s market, but it is also not stagnant. The unemployment rate of 4.4% matches the state average, providing a stable employment backdrop.
Key Trends
One clear trend is short-term cooling after a year of appreciation. The 12-month home value momentum of 7.04% shows that values rose over the longer window, but the 3-month momentum of -0.43% and the 18.5% share of listings with a price cut indicate that sellers are adjusting to softer buyer demand. The reported home value year-over-year figure of $0 appears inconsistent with the 12-month momentum indicator and should be viewed cautiously.
A second trend is the strength of the rental market. Faribault’s rent index of $1,601 is $366 above the state average of $1,235, or roughly 30% higher. Because the median home value is almost identical to the state average, rental income potential looks relatively attractive compared with the cost of housing stock. This dynamic may support investor interest even as home price growth cools.
Third, inventory and market pace suggest balance rather than extremes. With 199 homes for sale and a median of 39 days on market, homes are taking just over a month to go under contract. The share of listings with a price cut, at 18.5%, is meaningful but still below a majority, suggesting sellers are not broadly slashing prices but are more willing to negotiate than during peak demand.
Finally, affordability is slightly weaker than the state benchmark. The median home value of $355,932 is nearly identical to Minnesota’s $356,066, but median household income in Faribault is $82,792, below the state’s $87,556. This means the typical home costs about 4.3 times the typical household income, compared with about 4.1 times at the state level. That is not a severe gap, but it indicates local buyers may feel more price pressure than the statewide average would suggest.
Who Is This Market For
Faribault appears well suited to rental property investors because the rent index of $1,601 is well above the state average of $1,235, while the median home value of $355,932 is almost exactly the state average. That combination can offer a more favorable rental income-to-price relationship than many Minnesota markets. Investors who can tolerate the recent 3-month price momentum of -0.43% and are buying for cash flow rather than short-term appreciation may find this market appealing.
The market may also work for patient first-time buyers and owner-occupants. A median of 39 days on market and an 18.5% price-cut share indicate there is some room to negotiate, particularly compared with a fast-moving market. However, the median household income of $82,792 is below the state average, so first-time buyers may need down payment assistance or flexible financing to comfortably afford the median home value of $355,932.
Move-up buyers may find opportunities as well. The 12-month home value momentum of 7.04% suggests existing homeowners have built some equity over the past year. But because 3-month momentum is slightly negative and price cuts are present, they may also face a more balanced resale environment when selling their current home.
Outlook
The near-term outlook for Faribault is one of moderation. The 3-month home value momentum of -0.43%, the 18.5% share of listings with a price cut, and a median of 39 days on market all point toward a market that is cooling from its 12-month pace of 7.04% appreciation. Sellers may need to price competitively as buyer urgency eases. At the same time, the rental market remains a bright spot: a $1,601 rent index compared with the state average of $1,235 should continue to attract landlord interest, especially since home values are near the state average. Unemployment is in line with the state at 4.4%, which supports housing demand generally. However, population growth is not available in this dataset, so the demand outlook cannot be fully assessed. The reported home value year-over-year figure of $0 also adds uncertainty to the longer-term appreciation picture. Overall, the data supports a stable but softening market in the near term, with rental demand providing more support than rapid price growth.
AI-generated analysis based on current market data. Last updated August 31, 2026.
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Faribault, MN market data
Faribault, MN Housing Market Overview
Faribault, MN's median home value is $356K, up 7.0% over the past year. Homes here sell in a median 39 days. Its PropertyIQ Score of 73 sits well above the state average of 50, marking a market positioned to outperform its state over the next three years.
Whether you're considering buying a home, investing in rental property, or weighing entry timing in the Faribault, MN area, the PropertyIQ Score gives you a single, data-first read on relative market strength. It is validated against actual market outcomes from 2001 to 2023, with a positive score-to-return relationship in every validated year across MN and every other US state.
Midwestern housing markets are characterized by affordability and economic diversification. From manufacturing hubs undergoing tech-sector transitions to university towns with stable demand, the region offers value-oriented opportunities with lower entry costs than coastal markets. Within the Midwest, Faribault, MN's PropertyIQ Score of 73 ranks among the Midwest's stronger demand signals.
Each month, PropertyIQ updates its score for Faribault, MN using four inputs: Zillow ZHVI twelve-month and three-month momentum, Realtor.com median days on market, and the Realtor.com share of listings with price cuts. These four signals are combined into a single 1 to 99 score computed across all metro markets and calibrated so 50 represents the state average, making it a direct read of how this market is positioned to perform relative to its state. Momentum here has been positive, with home values up 7.0% over the past year.
View Faribault, MN's complete market profile including historical price trends, score history, and AI-generated analysis. Compare this market against any other US metro to find the best opportunities for your investment strategy.
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Market data through July 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Faribault, MN a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Faribault, MN currently scores 73, a rising-momentum reading that leaves it positioned to outperform its state over the next three years. For buyers, strengthening demand usually means rising competition and firmer prices, so waiting can cost you negotiating room. Backing that up, the median home value here is $356K, up 7.0% over the past year. So whether Faribault, MN is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Faribault, MN?
Faribault, MN's PropertyIQ Score is 73, indicating rising momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 73 places Faribault, MN above its state benchmark.
Are home prices in Faribault, MN rising or falling?
Home prices in Faribault, MN are rising. Over the past year, the median home value increased 7.0%, reaching $356K. Over the latest three months, values slipped 0.4%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Faribault, MN's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Faribault, MN?
In Faribault, MN, homes sell in a median of 39 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 18% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Faribault, MN market data is refreshed on a monthly cycle, with the latest figures current through July 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.