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 | $1,390 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,800 |
| 5 Bedrooms | $3,248 |
| 6 Bedrooms | $3,638 |
| 7 Bedrooms | $3,929 |
| 8 Bedrooms | $4,125 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,490 | $459,992 | 0.54% | F |
| 4BR | $2,800 | $527,906 | 0.53% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 55065, located in Goodhue County, MN, presents a unique opportunity for real-estate investors. The Fair Market Rent (FMR) set by HUD for this area in fiscal year 2024 is $1660 per month. This figure is significantly higher than the average market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $1,411 per month.
This comparison indicates that voucher tenants can indeed provide positive cash flow at the HUD FMR rate. Landlords can expect a tenant who pays above the market rate, making it advantageous to accept Section 8 vouchers. The higher rental income relative to market rates suggests that investors will see a marginally better cash flow situation when renting to voucher holders.
To further analyze the investment potential, consider the median home value in the area, which is $461,808. Using the HUD FMR of $1660, we can calculate a rent-to-price ratio of approximately 0.0040. This means that the monthly rent represents about 0.40% of the median home value, which is favorable for rental properties, indicating that the rental income is relatively high compared to property values.
Note that the median days on market (DOM) and the percentage of price cuts are not available for this area. However, given the strong rent-to-price ratio, the dynamics suggest that holding onto rental properties rather than selling might be more beneficial. The higher-than-market rental income from Section 8 vouchers supports this strategy.
In conclusion, the strongest investor angle in ZIP 55065 is cash flow, as voucher tenants pay above the local market rent, providing a solid financial advantage for landlords and small-portfolio investors.
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.