Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,240 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
U.S. Census Bureau data (2024)
To integrate ZIP 55414 into a Section 8 portfolio strategy, consider it as a cash-flow anchor. The Fair Market Rent (FMR) for the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area for FY 2024 is set at $1610, slightly above the local market average of $1601 for a one-bedroom apartment. This means that landlords can expect to receive a consistent rental income that is marginally higher than the typical market rate, thus providing a stable financial base.
The median home value in ZIP 55414 is $353,476, which indicates a relatively stable housing market. However, the primary focus here should be on the rental aspect, given the high renter share of 84.9%. This suggests that the majority of residents in this area prefer renting over owning, making it an ideal location for a Section 8 property.
The median income of $51,966 aligns well with the income eligibility criteria for Section 8 tenants. Landlords will find that their properties are in high demand among qualified applicants, ensuring steady occupancy rates and predictable cash flow.
While the price-cut share of 0.1% and the non-existent day DOM (Days on Market) indicate that properties may sell quickly without significant price reductions, these factors are less relevant for a Section 8 portfolio focused on long-term rental income. The key metric here is the spread between the FMR and the market rate, which supports the cash-flow anchor strategy.
In summary, ZIP 55414 is best suited as a cash-flow anchor in a Section 8 portfolio due to the favorable FMR setting and the high proportion of renters. Landlords can rely on this area to provide consistent and slightly above-average rental income, making it a valuable addition to any diversified investment strategy.
Data Sources: FMR data from HUD (2027). 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.