Location: Goodhue County, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $286,319 | 0.54% | F |
| 3BR | $2,040 | $360,044 | 0.57% | F |
| 4BR | $2,280 | $461,648 | 0.49% | F |
| 5BR | $2,645 | $524,263 | 0.5% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 55009 in Goodhue County, Minnesota reveals a favorable environment for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for this area in fiscal year 2024 is $1,270. In contrast, the Census American Community Survey (ACS) reports the average market rent for the same period as $1,172. This indicates that voucher tenants can generate positive cash flow at the HUD FMR, as the subsidy amount exceeds the typical market rate.
To further analyze the investment potential, consider the median home value in ZIP 55009, which stands at $375,218. Using this figure, we can calculate the rent-to-price ratio. A quick computation shows that the annual rent ($1,172 x 12 months) is approximately $14,064, leading to a rent-to-price ratio of roughly 3.7%. This suggests that rental income constitutes a modest portion of the property's total value, indicating a balance between rental yield and property value appreciation.
Note that the median days on market (DOM) and the percentage of homes that experienced price cuts are not available for this ZIP code. However, the lack of these figures does not significantly impact the overall assessment, given the clear positive cash flow scenario presented by the HUD FMR versus the market rent.
The strongest angle for investors in ZIP 55009 is likely stability. With a consistent positive cash flow from voucher tenants and a balanced rent-to-price ratio, investors can expect steady returns without the volatility often associated with fluctuating market rents.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.