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 |
|---|---|---|---|---|
| 2BR | $1,540 | $344,158 | 0.45% | F |
| 3BR | $2,040 | $411,148 | 0.5% | F |
| 4BR | $2,280 | $463,131 | 0.49% | F |
| 5BR | $2,645 | $502,958 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 55045, located in Lindstrom, Minnesota, presents a dynamic housing market that is currently favoring demand over supply. This inference is drawn from the snapshot of data available, which shows a Fair Market Rent (FMR) of $1330 for the fiscal year 2024, while the market rent, as reported by the Census American Community Survey, stands at $1,210. The relatively low Fair Market Rent compared to the actual market rent suggests that there is a slight upward pressure on rents, indicating that demand is robust.
A key indicator of a balanced market is the price-cut share, which measures the percentage of homes that have been listed for sale and subsequently had their prices reduced. In ZIP 55045, this figure is impressively low at just 0.1%, suggesting that sellers are confident in their pricing and that buyers are willing to meet these asking prices without requiring reductions. This low rate of price cuts implies a strong seller's market, where homes are likely to sell quickly at or near the asking price.
The median home value in ZIP 55045 is $388,495, reflecting the overall economic conditions and desirability of the area. However, the lack of Days on Market (DOM) data means we cannot directly assess how quickly homes are selling, but the low price-cut share suggests a brisk pace.
The 9.9% renter share indicates a predominantly owner-occupied community. This characteristic can imply lower immediate housing pressure since a smaller portion of the population relies on rental properties. However, it also signals a potential long-term challenge for landlords and small-portfolio investors. As the population grows or changes, the limited rental stock could create upward pressure on rents if new rentals are not added to the market. Landlords should be prepared to maintain competitive rental rates and high-quality properties to attract and retain tenants.
In summary, ZIP 55045 is a market where demand appears to be slightly ahead of supply, evidenced by the higher market rent and the low price-cut share. For landlords and small-portfolio investors, this translates into an environment where rental income can potentially grow, but where competition for tenants will require attention to property quality and management practices.
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.