Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,270 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
U.S. Census Bureau data (2024)
The ZIP code 55423, located in Richfield, MN, within the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for fiscal year 2024 is set at $1550, which is significantly higher than the market rent of $1,320. This creates a positive spread of $230 per month, ensuring that landlords receive a consistent, above-market rental income.
The median home value in the area stands at $347,247, which is relatively high compared to other areas in the region. However, this does not detract from the ZIP's potential as a cash-flow anchor because the primary focus is on the rental income rather than property appreciation. The ZIP code's low price-cut share of 0.2% and a modest Days on Market (DOM) of 26 days indicate a stable market where properties do not often require significant discounts to sell, further supporting the idea of consistent cash flow.
Additionally, the ZIP code has a renter share of 38.4%, suggesting a healthy demand for rentals. The median income of $85,182 indicates that residents can afford higher rents, making it easier for landlords to maintain occupancy rates. Given these factors, 55423 provides a reliable source of income and stability within a Section 8 portfolio, making it a strong choice for landlords and small-portfolio investors seeking to secure their financial footing through steady cash flows.
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.