Location: Rochester, MN | Metro: Rochester, MN 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 | $1,010 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $326,755 | 0.54% | F |
| 4BR | $2,130 | $416,014 | 0.51% | F |
U.S. Census Bureau data (2024)
ZIP code 55929, located within the Rochester, MN HUD Metro FMR Area, exhibits several characteristics that distinguish it from other ZIP codes in the same metro area. The Fair Market Rent (FMR) for 55929 is set at $1110 for fiscal year 2024, which is notably higher than the market rent figure of $855. This suggests that the rental prices in 55929 are currently undervalued compared to what the government considers fair, potentially making it an attractive area for landlords participating in the Section 8 program.
The median home value in 55929 stands at $354,945. While this figure is not explicitly compared to the metro-wide average, it indicates that properties in this ZIP code are priced in a mid-range segment. This implies that 55929 is neither a low-value pocket nor a premium sub-market within the Rochester, MN HUD Metro FMR Area but rather occupies a middle ground in terms of property values.
A significant point of interest is the renter share of 10.3%. This percentage is relatively low compared to areas where rental housing is more prevalent. However, when combined with the below-FMR market rents, it suggests that there is room for growth in the rental market. Landlords could capitalize on the current disparity between FMR and market rent to attract tenants eligible for Section 8 assistance without significantly increasing their investment costs.
To summarize, ZIP code 55929 appears to be a mid-tier neighborhood within the Rochester, MN HUD Metro FMR Area. It offers opportunities for landlords due to its lower-than-FMR market rents and reasonable home values, positioning it as a potential value pocket for those seeking to enter the Section 8 housing market. The relatively low renter share also points towards untapped potential in the rental sector, which could be developed further to meet the needs of subsidized housing tenants.
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.