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 | $1,740 |
| 1 Bedroom | $1,970 |
| 2 Bedrooms | $2,390 |
| 3 Bedrooms | $3,120 |
| 4 Bedrooms | $3,500 |
| 5 Bedrooms | $4,060 |
| 6 Bedrooms | $4,547 |
| 7 Bedrooms | $4,911 |
| 8 Bedrooms | $5,157 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,390 | $282,359 | 0.85% | C |
| 3BR | $3,120 | $462,544 | 0.67% | D |
| 4BR | $3,500 | $626,017 | 0.56% | F |
| 5BR | $4,060 | $823,589 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP code 55347 is part of Eden Prairie, Minnesota, a suburban area known for its high standard of living and affluent community. With a total population of 30,429, only 8.3% are renters, indicating a predominantly owner-occupied neighborhood. The median household income stands at a robust $155,430, reflecting the economic prosperity of the residents. The median home value in this area is $565,063, which further underscores the premium nature of the housing market.
The rent economics in ZIP 55347 reveal an interesting dynamic. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $2,230, while the actual market rent, as measured by Zillow's ZORI, is $1,916. This suggests that the government's assessment of rental values is higher than what the market currently dictates, potentially creating opportunities for landlords who can manage properties efficiently to attract Section 8 tenants.
Given these conditions, ZIP 55347 might be more suitable for a hands-on value-add buyer rather than a hands-off operator. The discrepancy between the FMR and the market rent means that landlords will need to actively manage their properties to ensure they meet the quality standards required by the Section 8 program while also keeping costs in line with the local rental market. A value-add strategy could involve improving property amenities or management practices to appeal to both Section 8 tenants and other renters, thereby maximizing occupancy and rental income.
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.