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 | $1,340 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,510 | $245,002 | 0.62% | D |
| 2BR | $1,840 | $326,737 | 0.56% | F |
| 3BR | $2,400 | $342,134 | 0.7% | D |
| 4BR | $2,690 | $380,771 | 0.71% | D |
| 5BR | $3,120 | $425,639 | 0.73% | D |
U.S. Census Bureau data (2024)
ZIP code 55425, located in Bloomington, MN, falls within the larger Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 55425 in fiscal year 2024 is set at $1620, while the market rent stands at $1,650. This indicates that the rental prices are slightly above the FMR, which is common in many urban areas. The median home value in 55425 is $322,170, which is comparable to other ZIP codes within the metro area.
The renter share in 55425 is 67.0%, significantly higher than the average for the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area. Typically, a high renter share suggests a strong demand for rental properties, which can be beneficial for landlords and small-portfolio investors looking to capitalize on steady rental income. However, it also implies that there might be fewer opportunities for purchasing owner-occupied homes, as the majority of residents are renters.
Based on the provided figures, ZIP 55425 appears to be a mid-tier neighborhood within the metro area. The rental prices are close to the FMR, indicating neither an undervalued nor an overpriced market. The median home value is consistent with the broader market trends, suggesting that property values in 55425 reflect the overall economic conditions of the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area.
The high renter share in 55425, combined with rental prices just above the FMR, suggests that this ZIP code could be considered a sweet spot for Section 8 housing. Landlords in this area may find that their properties are attractive to tenants participating in the Section 8 program, given the alignment between the FMR and market rent. This makes 55425 a promising location for those interested in the Section 8 housing market, offering a balance between rental demand and reasonable property values.
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.