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 | $1,440 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,980 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,630 | $158,830 | 1.03% | B |
| 2BR | $1,980 | $265,592 | 0.75% | D |
U.S. Census Bureau data (2024)
ZIP code 55101 in Saint Paul, MN is a densely populated urban neighborhood with a total population of 7,911. The area is predominantly rental-focused, with 78.8% of residents being renters. This high percentage of renters indicates a strong demand for affordable housing options. The median household income in the neighborhood is $64,863, which suggests that it is moderately affluent. However, the median home value stands at $175,810, indicating that homeownership is relatively affordable compared to other parts of the city.
Moving into the realm of rent economics, the Fair Market Rent (FMR) for ZIP 55101 as of the fiscal year 2024 is set at $1,920. This figure is significantly higher than the actual market rent, which is estimated at $1,503 based on ZORI (Zillow Observed Rental Index). The discrepancy between the FMR and the market rent presents an opportunity for landlords and investors to capitalize on the difference, potentially increasing their rental income through participation in the Section 8 program.
Considering the characteristics of ZIP 55101, it is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the neighborhood's high renter occupancy rate and the gap between FMR and market rent make it a reliable location for steady rental income without the need for significant property management efforts. On the other hand, value-add buyers can find opportunities to improve properties and command rents closer to the FMR, thereby increasing their profit margins.
The strong tenant base and favorable economic conditions in ZIP 55101 make it an attractive investment for those looking to enter the Section 8 housing market. Whether you aim to maintain a passive income stream or actively manage and enhance your portfolio, this neighborhood offers solid prospects for success.
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.