Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
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 | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $307,034 | 0.5% | F |
| 3BR | $2,040 | $374,318 | 0.54% | F |
| 4BR | $2,280 | $472,603 | 0.48% | F |
| 5BR | $2,645 | $529,256 | 0.5% | F |
U.S. Census Bureau data (2024)
ZIP 54022, located in River Falls, WI, within the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area, is best suited as an appreciation play in a Section 8 portfolio strategy. The primary reason for this classification lies in the low price-cut share and non-applicable day DOM (Days on Market), which indicates that homes in this area maintain their value well and sell quickly when listed.
The Fair Market Rent (FMR) for ZIP 54022 in fiscal year 2024 is set at $1280, significantly below the market rent of $1,733. This spread highlights the potential for rental income growth over time as market rents increase. Moreover, the median home value stands at $405,457, a figure that reflects the stable and potentially appreciating nature of the real estate market in this area. Given the 0.2% price-cut share, it is evident that properties in this ZIP code rarely need to be discounted to attract buyers, suggesting strong demand and stability in property values.
The median income in ZIP 54022 is $96,642, which is relatively high compared to many other areas. This factor contributes to the robustness of the local economy and supports the idea that property values are likely to appreciate over time. Additionally, the 31.8% renter share provides a diversified tenant base, reducing reliance on any single demographic or income level. However, the focus here should be on the strong potential for capital appreciation rather than rental income diversification.
In conclusion, ZIP 54022 offers a solid opportunity for appreciation within a Section 8 portfolio strategy. Its low price-cut share and quick sales indicate a resilient housing market, while the spread between FMR and market rent points to future growth potential in rental income. Landlords and small-portfolio investors can benefit from the long-term value appreciation of properties in this area, making it an attractive choice for those looking to build wealth through real estate investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.