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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,270 | $187,186 | 0.68% | D |
| 2BR | $1,540 | $252,969 | 0.61% | D |
| 3BR | $2,040 | $300,308 | 0.68% | D |
| 4BR | $2,280 | $337,482 | 0.68% | D |
| 5BR | $2,645 | $380,253 | 0.7% | D |
U.S. Census Bureau data (2024)
ZIP Code 55075, located in South Saint Paul, MN, within the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area, can serve as a cash-flow anchor in a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for the fiscal year 2024 is set at $1330, while the market rent stands at $1435. This indicates that the spread between the FMR and the market rent is $105 per month, providing a stable income stream that aligns closely with government-subsidized rental rates.
The median home value in ZIP 55075 is $295,887, which suggests that the area is moderately priced compared to larger metropolitan areas. Given these parameters, landlords and small-portfolio investors can rely on consistent rental payments from tenants participating in the Section 8 program, ensuring a predictable cash flow without significant fluctuations due to market volatility.
The 0.2% price-cut share and N/A-day days on market (DOM) indicate that there is little need for landlords to reduce their asking prices or wait extended periods for tenants. This further supports the idea that ZIP 55075 can provide a steady and reliable cash flow, making it an ideal anchor for a Section 8-focused investment strategy.
While the 30.2% renter share and median income of $88,386 suggest that the area could also be considered a diversifier, the primary focus should be on its role as a cash-flow anchor. The relatively high median income provides assurance that tenants will meet their obligations, reducing the risk of default and maintaining the financial stability of the portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.