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 | $1,510 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,030 |
| 5 Bedrooms | $3,515 |
| 6 Bedrooms | $3,937 |
| 7 Bedrooms | $4,252 |
| 8 Bedrooms | $4,465 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $354,884 | 0.58% | F |
| 3BR | $2,700 | $454,256 | 0.59% | F |
| 4BR | $3,030 | $584,452 | 0.52% | F |
| 5BR | $3,515 | $722,739 | 0.49% | F |
U.S. Census Bureau data (2024)
The real estate market in Mahtomedi, MN (ZIP 55115) presents a unique scenario that signals strong pricing power for the next 12-24 months. With a median home value of $500,695, the area already commands a premium price point. The fact that only 0.2% of listings have been reduced further underscores the sellers' market conditions, indicating that homes are generally selling at or near their asking prices. This trend suggests that landlords and small-portfolio investors can maintain or even slightly increase their rental rates without fear of losing tenants to lower-cost alternatives.
The median Days on Market (DOM) being listed as N/A points towards a highly efficient local real estate market where homes are sold quickly, often before reaching a typical DOM measurement. Rapid sales imply high demand and low inventory, which supports the notion of robust pricing power. For landlords, this translates into a stable tenant base willing to pay market rates due to limited housing options.
On the rent side, the Fair Market Rent (FMR) for ZIP 55115 as of the fiscal year 2024 is set at $2,020. However, the current market rent, according to Census ACS data, stands at $1,628. This discrepancy between FMR and actual market rent indicates an upward pressure on rental prices. Landlords should expect to gradually raise rents to align with the FMR without significant pushback from tenants, given the strong seller's market and limited supply of affordable housing.
For long-term investors, the setup implies a realistic appreciation thesis. The combination of a stable economy, a desirable suburban location close to major employment centers, and a relatively low percentage of price reductions suggests that property values are likely to remain steady or even appreciate moderately over time. However, the appreciation rate will depend on broader economic factors such as interest rates and job growth in the region. Investors should anticipate a conservative annual appreciation rate of around 2-3%, reflecting the balance between the strong local market and the broader macroeconomic environment.
In summary, the current real estate landscape in Mahtomedi, MN, characterized by a high median home value, minimal price reductions, and rapid sales, positions landlords and small-portfolio investors favorably. They can leverage this market strength to secure higher rents and potentially benefit from moderate property value appreciation over the coming years.
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.