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 | $1,490 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $2,990 |
| 5 Bedrooms | $3,468 |
| 6 Bedrooms | $3,884 |
| 7 Bedrooms | $4,195 |
| 8 Bedrooms | $4,405 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,680 | $214,940 | 0.78% | D |
| 2BR | $2,040 | $437,361 | 0.47% | F |
| 3BR | $2,660 | $562,999 | 0.47% | F |
| 4BR | $2,990 | $784,844 | 0.38% | F |
| 5BR | $3,468 | $1,231,332 | 0.28% | F |
U.S. Census Bureau data (2024)
ZIP code 55410, located in Minneapolis, MN, is part of the larger Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 55410 is set at $1790 for fiscal year 2024, which is notably lower than the average market rent of $2,505. This discrepancy suggests that 55410 could be considered a value pocket within its metro area, offering rental opportunities at rates below what the market demands.
The median home value in ZIP 55410 stands at $591,082. While this figure is substantial, it is important to note that it does not necessarily indicate a premium sub-market, especially when compared against the overall metro area where home values can vary widely. The primary factor influencing investment decisions in this context should be the renter share and the FMR.
The renter share in ZIP 55410 is 21.4%, which is a key indicator for potential Section 8 participation. A higher renter share combined with lower-than-market home values and an FMR that is significantly less than the market rent often signifies a sweet spot for Section 8 investments. Landlords and small-portfolio investors in this area can leverage the lower FMR to offer competitive rents while still achieving reasonable returns on their investments.
In summary, ZIP 55410 appears to be a value pocket within the broader Minneapolis-St. Paul-Bloomington metro area. Its lower FMR and significant renter share make it particularly attractive for Section 8 properties, providing an opportunity for investors to capitalize on government subsidies without having to compete with the higher-priced market rents found elsewhere in the city.
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.