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 | $1,310 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,630 |
| 5 Bedrooms | $3,051 |
| 6 Bedrooms | $3,417 |
| 7 Bedrooms | $3,690 |
| 8 Bedrooms | $3,875 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,480 | $238,494 | 0.62% | D |
| 2BR | $1,800 | $307,245 | 0.59% | F |
| 3BR | $2,350 | $367,264 | 0.64% | D |
| 4BR | $2,630 | $405,195 | 0.65% | D |
| 5BR | $3,051 | $486,888 | 0.63% | D |
U.S. Census Bureau data (2024)
The ZIP code 55309, located in Big Lake, MN, presents a market characterized by a delicate balance between affordability and demand. The Fair Market Rent (FMR) for the area stands at $1580 for fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates a slightly higher market rent at $1,839. This suggests that the rental market is somewhat above the government's fair market assessment, implying a steady demand for rental properties.
The 0.2% price-cut share is a telling statistic, indicating that very few listings are being reduced in price, which can be interpreted as a sign of stability or even slight upward pressure on rents. The days on market (DOM) of 22 days further supports this view, showing that homes are selling relatively quickly, suggesting a healthy level of interest from buyers.
A median home value of $368,491 places Big Lake in a middle-tier market when compared to surrounding areas. This figure is significant as it provides insight into the overall cost of living and the financial commitment required for homeownership. It also serves as a reference point for rental pricing, given that rental rates often correlate with the cost of purchasing a home.
The 9.4% renter share reveals an interesting dynamic within the community. While this percentage might seem low, it signifies that a substantial portion of residents own their homes, which could indicate less immediate pressure on rental availability. However, this also means that any increase in rental demand could lead to significant changes in the rental market, as there are fewer units available to meet rising demand. Over the long term, a low renter share may imply that housing pressure is relatively stable, but landlords should remain vigilant to signs of changing demographics or economic factors that could alter this balance.
In summary, ZIP 55309 appears to be a market where demand meets supply without overwhelming either side. Rental properties are in a good position due to a slightly higher market rent compared to the FMR, and the quick turnover of homes suggests a robust buyer's market. Landlords and small-portfolio investors should consider these dynamics when making decisions about property management and investment strategies in this area.
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.