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 | $1,550 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,120 |
| 5 Bedrooms | $3,619 |
| 6 Bedrooms | $4,053 |
| 7 Bedrooms | $4,377 |
| 8 Bedrooms | $4,596 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,750 | $129,966 | 1.35% | A |
| 2BR | $2,130 | $207,909 | 1.02% | B |
| 3BR | $2,780 | $586,254 | 0.47% | F |
| 4BR | $3,120 | $777,382 | 0.4% | F |
| 5BR | $3,619 | $925,292 | 0.39% | F |
U.S. Census Bureau data (2024)
The ZIP code 55435, located in Edina, Minnesota, stands out in Hennepin County due to its affluent demographic and significant rental market presence. With a population of 14,192 residents, 52.4% of whom are renters, it reflects a community that is both diverse and economically robust. The median income in this ZIP is $79,884, which is notably higher than the national average, indicating a well-off populace. The median home value is $212,937, suggesting that while homes are relatively expensive, they remain accessible compared to other areas in the county.
In terms of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 55435 in fiscal year 2024 is set at $2,040. This figure is slightly above the market rent, as measured by the Zillow Rent Index (ZORI), which stands at $1,930. This means that landlords accepting vouchers can expect to receive slightly more than the typical market rate, providing an incentive for participation in the program despite the administrative complexities involved.
The data signature of ZIP 55435 indicates a stable environment. The high median income suggests a strong economic foundation, while the significant rental market share points to ongoing demand for affordable housing options. Given these factors, landlords and small-portfolio investors can anticipate consistent occupancy rates and steady cash flows when participating in the Section 8 program in this area.
To summarize, ZIP 55435 offers a unique opportunity for those interested in the rental market, with a solid economic base and a favorable balance between voucher payments and market rents. The stability of the area, combined with the slightly above-market payment standard, presents a compelling case for investment and participation in the Section 8 program.
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.