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 | $1,120 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,270 | $164,922 | 0.77% | D |
| 2BR | $1,540 | $322,536 | 0.48% | F |
| 3BR | $2,040 | $466,912 | 0.44% | F |
| 4BR | $2,280 | $713,723 | 0.32% | F |
| 5BR | $2,645 | $1,039,665 | 0.25% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 55405, Minneapolis, MN, suggests a market with strong pricing power over the next 12-24 months. The median home value stands at $461,660, indicating a robust valuation that has remained stable. With only 0.1% of listings experiencing reductions, it's evident that sellers maintain significant leverage, unwilling to lower prices in a competitive environment. The median days on market (DOM) being listed as N/A signals either a very tight market where homes sell quickly upon listing, or a recent trend where sales occur rapidly without extended periods of exposure.
On the rental side, the forward monthly rental rate (FMR) for ZIP 55405 is projected to be $1,580 for fiscal year 2024, compared to the current market rate (ZORI) of $1,424. This indicates a potential upward pressure on rents, aligning with the strong pricing power observed in the sales market. Landlords can expect to see an increase in rental income as the market adjusts to higher values, making rental properties in ZIP 55405 increasingly attractive.
For long-hold investors, the setup implies a realistic appreciation thesis. Given the stable median home values and the slight reduction in listings, coupled with the expected rise in rental rates, there is a solid foundation for continued growth in property values. Investors should anticipate a scenario where both their equity and rental income will likely appreciate over time, making ZIP 55405 a prudent choice for those looking to hold onto real estate assets for the long term.
The combination of these factors—median home values, minimal price reductions, and rising rental rates—points to a market that is poised for sustained stability and gradual growth. This environment supports landlords and small-portfolio investors in maintaining their investment positions and leveraging the strong local economy for financial gains.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.