Section 8 Fair Market Rent (FMR) for ZIP 54014 - 2027

Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area

Investment Score for ZIP 54014

N/A

Monthly Rent (2BR)

$1,540

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,120
1 Bedroom	$1,270
2 Bedrooms	$1,540
3 Bedrooms	$2,040
4 Bedrooms	$2,280
5 Bedrooms	$2,645
6 Bedrooms	$2,962
7 Bedrooms	$3,199
8 Bedrooms	$3,359

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$2,040	$349,125	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,026

Median Household Income

$101,667

Housing Units

884

Renter Percentage

9.9%

Occupancy Rate

94.1%

Renter Occupied

A landlord considering investing in ZIP code 54014 for Section 8 properties must follow a structured decision-making process based on financial feasibility and market demand.

Step 1: Determine if the Fair Market Rent (FMR) of $1270 can cover the debt service on a property valued at $344,057. This involves calculating the monthly mortgage payment plus other expenses such as insurance and taxes. If these costs are less than $1270, then the answer is yes; otherwise, no.

Step 2: Compare the market rent of $1,065 with the FMR. If the market rent is above the FMR, it indicates that the area might be overvalued for Section 8 tenants. If it's at or below the FMR, the property is appropriately priced for Section 8.

If the market rent is above the FMR, consider whether the difference justifies the investment given the constraints of Section 8 rental limits.
If the market rent is at or below the FMR, proceed to Step 3.

Step 3: Assess the rental demand in the area. The ZIP code has a rental rate of 9.9%, indicating a moderate level of demand. Additionally, the N/A-day Days on Market (DOM) suggests either a lack of available data or that listings move quickly once they're posted.

If the DOM is short (N/A implies quick turnover), this supports a positive outlook on demand, leading to a yes on investment.
If there is insufficient data to determine DOM, the decision hinges on the 9.9% rental rate and other local market indicators.

In summary, for ZIP 54014, the viability of a Section 8 investment depends on the ability of the FMR to cover debt service and the alignment of market rents with the FMR. Given the moderate rental rate and potentially quick market turnover, the investment can be considered feasible if the first two conditions are met.

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.