Location: Meeker 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 | $1,210 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,680 | $351,967 | 0.48% | F |
| 3BR | $2,230 | $446,616 | 0.5% | F |
| 4BR | $2,540 | $529,401 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 55382, located in South Haven, Minnesota, reveals a unique balance between yield and stability that does not clearly fit into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a market that offers moderate potential for both yield and stability.
On the yield axis, the Fair Market Rent (FMR) for ZIP 55382 in fiscal year 2024 is set at $1,420, which is higher than the local market rate of $1,327 but significantly lower than the median home value of $405,518. This suggests that rental properties can generate above-average returns compared to owning a home, but the overall yield is still relatively modest.
Moving to the stability axis, the rental market in South Haven appears less robust. Only 5.2% of the population are renters, indicating a smaller pool of potential tenants and possibly more competition among landlords. The average daily days on market (DOM) data is not available, which could imply either strong demand or weak supply dynamics, but without specific figures, it's difficult to draw a definitive conclusion. However, the median household income of $93,661 provides a solid economic foundation for the area, supporting the likelihood that tenants can afford rent payments consistently.
To summarize, ZIP 55382 offers a moderate yield opportunity, with rental rates slightly above the market average, but falls short of being a high-yield market due to the low percentage of renters and the absence of data on DOM. The stability of the market is bolstered by the median income figure, which is quite healthy, but the small rental population suggests a less stable environment for landlords. Therefore, this area is best classified as a market with moderate yield and stability characteristics, suitable for cautious investment rather than aggressive flipping strategies.
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.