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 | $1,420 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $2,850 |
| 5 Bedrooms | $3,306 |
| 6 Bedrooms | $3,703 |
| 7 Bedrooms | $3,999 |
| 8 Bedrooms | $4,199 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $224,205 | 0.71% | D |
| 2BR | $1,950 | $337,914 | 0.58% | F |
| 3BR | $2,550 | $374,889 | 0.68% | D |
| 4BR | $2,850 | $409,524 | 0.7% | D |
| 5BR | $3,306 | $457,907 | 0.72% | D |
U.S. Census Bureau data (2024)
ZIP code 55413, located in Minneapolis, MN, is situated within the larger Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area. To understand its position within the metro, we can compare its key metrics to the typical ZIP codes in the area.
The Fair Market Rent (FMR) for ZIP 55413 in fiscal year 2024 is set at $1700. This figure closely aligns with the market rent of $1,753, indicating that the rental prices are near the HUD's fair assessment. The home value in 55413 stands at $326,893, which is likely reflective of the overall housing market trends in the Minneapolis-St. Paul-Bloomington region. A notable metric is the renter share, which is 61.6%—a significant portion of residents are renters rather than homeowners.
Based on these figures, ZIP 55413 appears to be a mid-tier neighborhood within its metro. Its FMR and market rent are in line with what would be expected for a typical ZIP code in the area, suggesting neither an exceptionally high nor low rental market. The home value is also consistent with average expectations, further supporting its classification as a mid-tier location.
The high renter share, however, diverges from what might be considered typical for the metro. In many cases, a higher proportion of renters can indicate a potential sweet spot for Section 8 properties. This is because areas with a greater number of renters and lower home values often attract more tenants seeking subsidized housing options. However, given that 55413 has a home value that is not significantly below the metro average, it may not be as attractive purely based on this criterion alone.
In conclusion, ZIP 55413 represents a balanced opportunity within the Minneapolis-St. Paul-Bloomington metro. Landlords and small-portfolio investors should consider the high renter share as a positive indicator for demand, but the relatively average home values suggest it is not a particularly undervalued area. It is advisable to conduct further analysis on specific property types and their alignment with Section 8 requirements before making investment decisions.
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.