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 | $1,900 |
| 1 Bedroom | $2,140 |
| 2 Bedrooms | $2,600 |
| 3 Bedrooms | $3,390 |
| 4 Bedrooms | $3,810 |
| 5 Bedrooms | $4,420 |
| 6 Bedrooms | $4,950 |
| 7 Bedrooms | $5,346 |
| 8 Bedrooms | $5,613 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,600 | $531,263 | 0.49% | F |
| 3BR | $3,390 | $632,234 | 0.54% | F |
| 4BR | $3,810 | $706,677 | 0.54% | F |
U.S. Census Bureau data (2024)
ZIP 55047, located in Marine on Saint Croix, MN, within the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area, is best suited as a cash-flow anchor in a Section 8 portfolio strategy. This classification is based on the favorable financial metrics that support consistent rental income.
The Fair Market Rent (FMR) for ZIP 55047 in fiscal year 2024 is set at $2430, which exceeds the current market rent of $2,109. This $321 spread per month ensures that landlords participating in the Section 8 program can maintain positive cash flow without relying on market fluctuations. The higher FMR rate covers the cost of renting in this area, making it a reliable source of income.
Furthermore, the median home value in ZIP 55047 is $613,635. This high median home value indicates a strong local economy where homeownership is prevalent. However, for those who choose to rent, the guaranteed higher rent through the Section 8 program makes it an attractive option. Landlords benefit from the stability of government-backed tenants, ensuring a steady stream of income.
While ZIP 55047 does not offer significant potential for appreciation plays due to the lack of data on price-cut shares and days on market (DOM), it serves as a valuable component in a diversified portfolio. With a 5.6% renter share, there is a niche market for rentals, and the median income of $107,361 suggests that residents have the financial means to afford housing, even if they are not eligible for the Section 8 program.
In conclusion, ZIP 55047 is best positioned as a cash-flow anchor in a Section 8 portfolio strategy. The substantial spread between the FMR and market rent, along with the high median home value, supports this role. Although it may not provide opportunities for rapid appreciation, it offers the security and reliability needed for landlords and small-portfolio investors seeking stable returns.
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.