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 | $1,660 |
| 1 Bedroom | $1,870 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $2,960 |
| 4 Bedrooms | $3,320 |
| 5 Bedrooms | $3,851 |
| 6 Bedrooms | $4,313 |
| 7 Bedrooms | $4,658 |
| 8 Bedrooms | $4,891 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,270 | $260,266 | 0.87% | C |
| 3BR | $2,960 | $457,145 | 0.65% | D |
| 4BR | $3,320 | $544,154 | 0.61% | D |
| 5BR | $3,851 | $652,307 | 0.59% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 55346, which encompasses Eden Prairie, MN, is set at $2230 for the fiscal year 2024. This figure represents the maximum amount that a Section 8 tenant can be reimbursed for rent in this area. In comparison, the market rent as per the Census ACS data is significantly lower at $1,875. This discrepancy indicates that voucher tenants would generate positive cash flow for landlords and small-portfolio investors, as the reimbursement rate exceeds the average market rent.
To further analyze the investment potential, consider the median home value in ZIP 55346, which stands at $488,061. Using this figure, we can derive a rent-to-price ratio. The annual rent of $1,875 translates to a monthly rent of approximately $156.25, resulting in an annual rent of roughly $18,750. Given the median home value, the rent-to-price ratio is about 3.8%, which is indicative of a relatively stable rental market where property values support current rental rates.
The dynamics between renting and buying in this area are also noteworthy. With a median Days on Market (DOM) of N/A and a price-cut share of just 0.1%, it's evident that the real estate market in Eden Prairie is robust and buyers are willing to purchase properties without significant negotiation. This suggests that the rental market is likely to remain stable, as there is little pressure from the sales market to reduce rents.
The strongest angle for investors in ZIP 55346 is cashflow. Due to the higher HUD FMR compared to the market rent, landlords can expect a steady positive cash flow from Section 8 tenants, making this area particularly attractive for those looking to maximize their income from rental properties.
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.