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 | $1,670 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,350 |
| 5 Bedrooms | $3,886 |
| 6 Bedrooms | $4,352 |
| 7 Bedrooms | $4,700 |
| 8 Bedrooms | $4,935 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,290 | $311,059 | 0.74% | D |
| 3BR | $2,990 | $462,407 | 0.65% | D |
| 4BR | $3,350 | $742,219 | 0.45% | F |
| 5BR | $3,886 | $914,073 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 55446 in Plymouth, Minnesota reveals a favorable environment for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area stands at $2130 for fiscal year 2024, which is notably higher than the actual market rent, measured by Zillow's ZORI, at $2064. This means that voucher tenants will generally cashflow at the FMR rate, providing a buffer against potential financial shortfalls.
To further understand the investment landscape, consider the median home value in the area, which is $618,877. Using this figure, we can calculate a rent-to-price ratio of approximately 0.35%, indicating that rental properties in this area offer a relatively low return compared to property values. However, the low return-to-price ratio does not necessarily mean poor investment potential; it often correlates with stability and low-risk environments.
The market dynamics also show a strong demand for rental properties, with a median Days on Market (DOM) of just 48 days. This quick turnover suggests a competitive rental market where properties are occupied rapidly, reducing vacancy rates and associated costs. Additionally, the fact that only 0.2% of listings involve price cuts indicates a robust rental market where landlords can maintain their asking rents without significant concessions.
In conclusion, the strongest angle for investors in ZIP 55446 is stability. With voucher tenants able to cashflow at the HUD FMR, a competitive rental market, and high property values, investors can expect consistent returns and minimal risk, making this area an attractive choice for long-term investment strategies focused on steady cash flow and property value preservation.
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.