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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,040 | $448,465 | 0.45% | F |
| 4BR | $2,280 | $503,344 | 0.45% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 55031 reveals a unique blend of yield and stability that can inform investment strategies for both landlords and small-portfolio investors.
Starting with yield, the Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,320. This is notably higher than the market rent of $1,102, indicating a potential upside for properties that qualify under Section 8 programs. However, the median home value stands at $460,586, which is a significant figure compared to the FMR and market rents. This suggests that while there is a premium in rental rates for subsidized housing, the overall cost of acquiring property in this ZIP code is relatively high.
Moving on to stability, the percentage of renters is quite low at 4.8%. This indicates that the majority of residents in ZIP 55031 are homeowners, which can affect the demand for rental properties. The average daily days on market (DOM) is not available, but the median household income is reported at $114,338. This robust income level implies that tenants who do rent in this area are likely to be financially stable and able to meet their obligations consistently.
Based on these figures, ZIP 55031 does not fit neatly into either a high-yield/low-stability "flip-style" market or a steady-cashflow zone. Instead, it represents a middle ground. The higher FMR compared to market rent offers an attractive yield for Section 8 properties, but the low percentage of renters and the high median home value suggest limited opportunities for rapid turnover or flipping. The strong income levels provide a degree of stability, ensuring that those who do rent are reliable tenants.
In summary, ZIP 55031 offers a moderate yield with a lean towards stability due to the financial strength of its residents. For investors looking to capitalize on Section 8 subsidies, this ZIP code presents a viable option, though with a caveat regarding the overall property acquisition costs and lower rental demand.
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.