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 | $1,170 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,320 | $130,088 | 1.01% | B |
| 2BR | $1,600 | $269,868 | 0.59% | F |
| 3BR | $2,090 | $329,773 | 0.63% | D |
| 4BR | $2,340 | $364,713 | 0.64% | D |
| 5BR | $2,714 | $396,314 | 0.68% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 55432, located in Fridley, MN, within the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area, works favorably for landlords. The Fair Market Rent (FMR) set at $1500 for fiscal year 2024 slightly exceeds the market rent indicated by ZORI at $1,476, suggesting that properties priced at the FMR level will still be competitive in the local rental market.
Acquisition in this area is affordable. With a median home value of $319,163, purchasing properties remains within reach for many investors. The average days on market (DOM) of 20 indicates that homes sell quickly once listed, which can be beneficial for those looking to turn over their investments rapidly. Additionally, the low price-cut share of 0.2% suggests that homes are generally selling close to their asking price, further supporting the idea that acquiring properties here is financially sound.
Tenant demand in ZIP 55432 is robust. The area has a population of 33,672, with 36.2% of residents being renters. This significant portion of the population seeking rental housing ensures a steady pool of potential tenants for any property available for lease.
In conclusion, ZIP 55432 presents a viable investment opportunity for landlords and small-portfolio investors. The slight edge in FMR over market rent, combined with affordable acquisition costs and strong tenant demand, makes it a promising area for real estate investment. However, investors should closely monitor market conditions and competition to ensure continued profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.