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 | $1,550 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,120 |
| 5 Bedrooms | $3,619 |
| 6 Bedrooms | $4,053 |
| 7 Bedrooms | $4,377 |
| 8 Bedrooms | $4,596 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,130 | $267,216 | 0.8% | D |
| 3BR | $2,780 | $383,233 | 0.73% | D |
| 4BR | $3,120 | $532,891 | 0.59% | F |
| 5BR | $3,619 | $773,160 | 0.47% | F |
U.S. Census Bureau data (2024)
ZIP code 55344 is part of Eden Prairie, Minnesota, a suburban neighborhood known for its high quality of life and affluent residents. The area has a population of 14,034, with nearly 60% of the residents being renters. This makes it an attractive location for rental property investments. The median household income in ZIP 55344 is $89,565, indicating a relatively prosperous community where residents have the financial means to afford higher rents. The median home value stands at $346,987, reflecting the overall stability and desirability of the housing market in this region.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for ZIP 55344 for fiscal year 2024 is set at $1,970. This is notably higher than the market rent, which is currently estimated at $1,704 according to ZORI (Zillow's Observed Rent Index). This discrepancy suggests that there could be opportunities for landlords to slightly increase their rents without significantly deterring tenants, given the FMR benchmark.
The question then arises: does this area suit a hands-off voucher operator or require a more hands-on approach for a value-add buyer? Given the high percentage of renters and the solid median income levels, hands-off operators can find success here, especially if they focus on properties that align with the FMR. However, for value-add buyers looking to improve and maximize returns, there is potential to enhance property values and rents beyond the current market average, leveraging the affluent demographic and strong local economy.
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.