Wabasha’s new downtown apartments: who will be able to afford the rent?

By: Judy Arney
After years of planning, delays, the construction of Wabasha’s new apartment building in more than a decade is starting. As this long-awaited project moves forward, residents have been asking; ‘Will these new apartments be affordable?’
On Monday March 9, the city blocked off the area where construction will start. Parking around the fence is not allowed. On Monday, March 23, will be the official ground breaking and beginning of the 50-unit apartment building at the site of the former Grandpa’s Barn on 2nd Street. Wabasha has not seen a new apartment complex built in over ten years, this moment could represent progress. Workers, seniors, and families have faced difficulty finding housing in Wabasha.
Keller Baartman, a developer based in Red Wing, is building the apartments. The project will include 11 studios, 17 one-bedroom apartments, 15 two-bedroom apartments, and seven three-bedroom apartments. Residents can expect heated underground parking, a fitness center, patios, and features that support accessibility. Rents are expected to range from $925 to $1,600 per month, depending on the size of the unit. These rent estimates are lower than what similar new apartments cost in larger cities like Rochester or Minneapolis.
Looking at the numbers the median household income in Wabasha County is about $80,000 per year, according to the United States Census Bureau. Within the city, the median household income is closer to $62,000. This difference reflects the presence of smaller households, many single-income families, and a significant number of retirees on fixed incomes.
Conventional budgeting wisdom advocates that a household should spend no more than 30 percent of its gross income on housing. By this standard, the new apartments would be accessible for many local residents.
A household earning $80,000 per year would spend about 14 percent of its income on a studio or one-bedroom at $925 per month. A three-bedroom at $1,600 per month would come to 24 percent of annual income.
For a household making $62,000 per year, a $925 studio would account for roughly 18 percent of its income, and a two-bedroom at $1,200 per month would require about 23 percent. These numbers still fall within the accepted range for affordability, though with less financial room to spare.
Affordability becomes more complicated when considering Wabasha’s senior population. Nearly half of the city’s residents are 55 or older. The city’s 2023 Housing Study identified a growing need for senior-friendly, low-maintenance apartments. Many seniors live on fixed incomes that fall well below the city’s median. For a retiree household earning between $24,000 and $35,000 per year, which is common for those relying mostly on Social Security, a rent of $925 per month would consume between 32 and 46 percent of annual income. This amount of spending on housing could be considered a significant financial burden.
The new downtown apartments are not subsidized affordable housing. They became financially possible through creative city support. The city sold the land for one dollar, created a tax increment financing plan worth about $1.6 million over 26 years, waived permit and utility fees, and secured a $166,528 Minnesota Workforce Housing grant. These efforts made the project feasible for developers, but did not reduce rents to the level of deeply affordable housing. The result is that middle-income households now have access to modern, new apartments. For Wabasha’s lowest-income seniors, more investment in affordable housing will be needed in the future.

For the rest of the story, purchase the 03/17/2026 edition of the Wabasha County Herald at your local news stand, or subscribe online.