Location: McLeod County, 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 | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,040 | $357,524 | 0.57% | F |
| 4BR | $2,280 | $461,677 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 55367 is situated in a predominantly suburban neighborhood characterized by a relatively small population of 1,122 residents. The area has a modest rental market share, with only 11.2% of the population being renters, indicating a community where homeownership is more prevalent. The median household income in this region stands at $94,107, which suggests a middle-class to upper-middle-class demographic. This is further supported by the median home value of $388,360, reflecting a stable and somewhat affluent residential environment.
Moving into the specifics of the rental market, the Fair Market Rent (FMR) for ZIP 55367 as of the fiscal year 2024 is set at $1,270. In comparison, the market rent based on Census ACS data is slightly lower at $1,227. These figures indicate that the rental market in 55367 is closely aligned with the government's assessment of fair market rates, suggesting minimal disparity between actual market conditions and the FMR.
Given these economic indicators, ZIP 55367 would be more suitable for a hands-off voucher operator rather than a hands-on value-add buyer. The small percentage of renters and the relatively high median income and home values suggest a market that is already fairly well-served and where the demand for subsidized housing might be limited. For an investor looking to manage properties with minimal intervention, leveraging the Section 8 program in this ZIP code could provide a steady and predictable stream of income, with less need for active property management or renovation efforts.
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.