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 | $1,200 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,360 | $159,966 | 0.85% | C |
| 2BR | $1,650 | $283,680 | 0.58% | F |
| 3BR | $2,150 | $400,861 | 0.54% | F |
| 4BR | $2,410 | $515,140 | 0.47% | F |
| 5BR | $2,796 | $624,646 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 55409 in Minneapolis, MN, presents a dynamic rental market with a federally determined Fair Market Rent (FMR) of $1560 for fiscal year 2024. This aligns closely with the Zillow Observed Rent Index (ZORI) of $1,558, indicating a stable equilibrium between what the government deems fair and what the market actually charges. The minimal 0.2% price-cut share suggests that landlords rarely need to reduce rents to attract tenants, pointing towards a market where demand meets supply effectively.
A median home value of $368,439 places this area within reach of many potential homeowners, yet the significant 34.5% renter share implies that a substantial portion of the population prefers or requires renting over owning. This high percentage of renters can indicate a few key dynamics: either the cost of homeownership is prohibitive for some, there's a large transient population, or both. Regardless, it signals persistent long-term housing pressure, as a considerable number of residents are likely to remain in the rental market due to financial constraints or lifestyle choices.
The lack of data on days on market (DOM) for rentals could suggest several things: either the data collection process is incomplete, or listings move so quickly that tracking becomes impractical. Given the low price-cut share, it's reasonable to infer that the latter might be true, indicating a robust demand for rental properties. This scenario points towards a market where demand outpaces supply, benefiting landlords and small-portfolio investors who can capitalize on the steady flow of tenants.
In summary, ZIP 55409 exhibits characteristics of a balanced but demand-driven rental market, with consistent pricing and low need for rent adjustments. The high renter share underscores an ongoing pressure in the housing sector, favoring those who have rental properties available for the eager tenant base.
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.