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 |
|---|---|---|---|---|
| 3BR | $2,040 | $305,127 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 54028, located within the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area, presents itself as a strong cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 54028 in fiscal year 2024 is set at $1270, which is significantly higher than the market rent of $957. This $313 spread between the FMR and the market rent means that landlords participating in the Section 8 program can expect to receive above-market rents, providing a solid financial cushion against market fluctuations.
A key advantage of this cash-flow anchor is its ability to mitigate risks associated with lower rental income. In ZIP 54028, the median home value stands at $338,023, indicating a relatively stable housing market where property values are unlikely to plummet. However, the focus here should be on the guaranteed rent through Section 8 vouchers, which ensures steady cash flow even when the broader market experiences downturns.
The data does not provide a specific percentage for price-cut share or days on market (DOM), which would typically help in assessing the potential for appreciation. Nonetheless, the significant gap between the FMR and the market rent suggests that the primary benefit lies in the security of cash flow rather than rapid appreciation.
ZIP 54028 also serves as a diversifier within a Section 8 portfolio due to its substantial renter share of 31.7%. This high percentage indicates a robust demand for rental properties, making it a valuable addition to a landlord's investment mix. Additionally, the median income of $85,341 supports the likelihood of tenants being able to afford their portion of the rent, further stabilizing the cash flow.
In summary, ZIP 54028 is best positioned as a cash-flow anchor within a Section 8 portfolio strategy. Its above-market rental rates guaranteed by the FMR, coupled with a high renter share and median income, make it a reliable choice for landlords seeking consistent returns on their 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.