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 | $1,220 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,370 | $183,153 | 0.75% | D |
| 2BR | $1,670 | $235,775 | 0.71% | D |
| 3BR | $2,180 | $275,716 | 0.79% | D |
| 4BR | $2,440 | $316,277 | 0.77% | D |
| 5BR | $2,830 | $346,894 | 0.82% | C |
U.S. Census Bureau data (2024)
The ZIP code 55107 in Saint Paul, MN, presents an interesting balance between yield and stability for real estate investors. With a Fair Market Rent (FMR) of $1,480 for the fiscal year 2024, it falls below the market rent of $1,622. However, the median home value stands at a considerable $268,508. This suggests that while rental income might be slightly lower than market rates, the potential for appreciation in property value could offer a strong secondary benefit.
On the stability axis, 55107 has a robust tenant base, with 39.4% of residents being renters. The median household income is reported at $74,531, which indicates a stable economic environment conducive to timely rent payments. The lack of data on days on market (DOM) makes it difficult to assess how quickly properties can be rented out, but the high percentage of renters and solid income levels suggest a steady demand for rentals.
To classify this market, we must consider both yield and stability factors. The FMR is approximately $142 less than the market rent, indicating a moderate yield opportunity. However, given the median home value and median income, this area leans more towards a steady-cashflow zone. The relatively high percentage of renters and stable income levels support this classification, as they imply a consistent stream of rental income and low risk of vacancy or default.
Investors looking to maximize cash flow should note that while the rental yield is not exceptionally high, the stability of the market provides a reliable investment option. For those interested in long-term growth, the median home value suggests significant potential for capital appreciation over time. In summary, ZIP 55107 offers a balanced approach with moderate yields and high stability, making it suitable for investors seeking a mix of cash flow and property value growth.
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.