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 | $1,380 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,560 | $199,750 | 0.78% | D |
| 2BR | $1,890 | $280,129 | 0.67% | D |
| 3BR | $2,470 | $336,888 | 0.73% | D |
| 4BR | $2,770 | $413,085 | 0.67% | D |
| 5BR | $3,213 | $540,684 | 0.59% | F |
U.S. Census Bureau data (2024)
The dynamics of the Golden Valley, MN market, represented by ZIP code 55422, indicate a balanced but slightly pressured rental environment. The Fair Market Rent (FMR) for the area stands at $1680 for fiscal year 2024, closely matching the market rent, known as the Zillow Observed Rent Index (ZORI), which is set at $1,677. This parity suggests that the rental market is stable, reflecting neither significant overvaluation nor undervaluation.
A key indicator of market health is the price-cut share, which measures the proportion of listings that have been reduced in price. In Golden Valley, this figure is 0.2%, an exceptionally low number that implies most properties are being rented at their initial asking price. This low rate of price reductions indicates strong demand relative to supply, suggesting that tenants are willing to pay the listed rates without prompting landlords to lower them.
The days on market (DOM) for rentals in this area is 30 days, which is relatively short, further supporting the notion of robust tenant interest. Short DOM periods generally correlate with a tight rental market, where units are quickly filled once they become available.
The median home value in Golden Valley is $339,105, a figure that reflects the overall property values in the area. However, with a renter share of 25.9%, it becomes clear that a significant portion of the population prefers renting over owning. This high renter share suggests ongoing long-term housing pressure, as a large number of residents are continuously seeking rental properties, likely due to affordability concerns or lifestyle preferences.
In summary, the market in ZIP 55422 shows signs of demand keeping pace with supply, if not slightly exceeding it, especially in the rental sector. The low price-cut share and short DOM periods suggest a favorable climate for landlords and small-portfolio investors, while the substantial renter share points to sustained rental activity driven by various economic and social factors.
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.