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 | $1,480 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,650 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,030 | $301,378 | 0.67% | D |
| 3BR | $2,650 | $391,277 | 0.68% | D |
| 4BR | $2,970 | $477,730 | 0.62% | D |
| 5BR | $3,445 | $583,714 | 0.59% | F |
U.S. Census Bureau data (2024)
Savage, MN, located within the ZIP code 55378 and part of the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area, presents itself as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for ZIP 55378 in fiscal year 2024 is set at $1930, which is notably higher than the market rent of $1784. This $146 spread ensures that landlords can maintain a steady and predictable income stream, even if market conditions fluctuate.
The median home value in Savage is $434,893, reflecting a stable housing market where property values are unlikely to drop significantly. This stability supports the long-term viability of a cash-flow anchor strategy, as it minimizes the risk of sudden drops in rental income due to declining property values.
A key factor supporting the cash-flow anchor designation is the low price-cut share of 0.2%, indicating that properties in this area rarely need to be discounted to attract tenants. Additionally, the Days on Market (DOM) average of 40 days shows that units are typically filled quickly, reducing vacancy rates and ensuring consistent cash flow.
While the renter share of 14.5% and median income of $124,871 might suggest some potential for appreciation plays or diversification, these factors are outweighed by the strong cash flow opportunities. Landlords and small-portfolio investors should focus on ZIP 55378 as a reliable source of income, given the favorable spread between the FMR and market rent, coupled with the rapid tenancy turnover and minimal need for price adjustments.
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.