Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,400 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,920 |
| 3 Bedrooms | $2,510 |
| 4 Bedrooms | $2,810 |
| 5 Bedrooms | $3,260 |
| 6 Bedrooms | $3,651 |
| 7 Bedrooms | $3,943 |
| 8 Bedrooms | $4,140 |
U.S. Census Bureau data (2024)
The rent math in ZIP code 55123, located in Eagan, MN, within the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area, is favorable for landlords. The Fair Market Rent (FMR) for the area set at $1830 for fiscal year 2024 exceeds the current market rent, known as the Zillow Observed Rental Index (ZORI), which stands at $1,657. This means that landlords can potentially charge above the market rate, attracting tenants who qualify for Section 8 housing vouchers.
Acquisition of properties in this area is relatively affordable, with a median home value of $472,267. While the exact days on market (DOM) and price-cut share are not available, the median home value suggests that properties are not overpriced. This makes it easier for small-portfolio investors to enter the market without facing excessive upfront costs.
Tenant demand is robust, given the population of 26,501 and a significant 22.1% renter share. With a substantial number of residents looking for rental options, landlords can expect a steady pool of potential tenants. This high demand supports the likelihood of maintaining occupancy rates and ensures a consistent cash flow.
In conclusion, ZIP code 55123 presents a strong opportunity for landlords and small-portfolio investors interested in Section 8 properties. The favorable rent math, combined with an affordable entry point into the market and a healthy tenant demand, makes this area attractive for investment. Landlords can leverage the higher FMR to secure Section 8 tenants while still remaining competitive in the local rental market.
Data Sources: FMR data from HUD (2027). 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.