Section 8 Fair Market Rent (FMR) for ZIP 54021 - 2027
Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
Investment Score for ZIP 54021
F
Monthly Rent (2BR)
$1,540
Median Price (2BR)
$326,852
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: 2026-08-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 2BR |
$1,540 |
$326,852 |
0.47% |
F |
| 3BR |
$2,040 |
$363,186 |
0.56% |
F |
| 4BR |
$2,280 |
$439,087 |
0.52% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$97,321
A skeptical investor considering Prescott, WI (ZIP 54021) might raise several concerns regarding the feasibility of investing in Section 8 properties. Let's address these objections head-on using the available data.
- Will FMR $1410 (zip FY 2024) cover the mortgage on a $399,768 home?: The Fair Market Rent (FMR) of $1410 per month in Prescott, WI, may not be sufficient to cover the mortgage on a home priced at $399,768. A typical mortgage payment for a property of this value, assuming a 20-year fixed-rate loan at an average interest rate, could range from $1800 to $2200 monthly. This means that the FMR is likely insufficient to fully cover mortgage payments, leaving investors to cover the shortfall out of pocket or through additional income streams such as property management fees.
- Is there enough renter demand at 27.2%?: With a rental occupancy rate of 27.2%, the demand for rental properties in Prescott, WI, appears relatively low. However, this figure does not necessarily indicate a lack of potential tenants. It is important to consider the local population dynamics, including the presence of any significant employers or institutions that could drive demand. Additionally, the percentage of rental demand must be weighed against the number of available units. If the supply of rental units is low, the existing demand could still support a competitive rental market. More detailed analysis of local employment and housing trends would provide a clearer picture of the true demand.
- Will vouchers keep pace with $1,202 market rents?: The median market rent of $1202 per month in Prescott, WI, presents another challenge for investors relying on Section 8 vouchers. While the FMR for the area is set at $1410, this does not guarantee that all vouchers will reach this amount. The effectiveness of vouchers in covering market rents depends on the availability of funding and the specific terms of the voucher program. Historically, voucher amounts have not always kept up with rising market rents, which could leave investors facing financial shortfalls if they rely solely on voucher payments. To mitigate this risk, investors should explore the possibility of offering a mix of Section 8 and market-rate rentals, or consider properties that can be rented below the median market rate.
The data provides a snapshot of the challenges and considerations for investing in Prescott, WI, but it also highlights the need for thorough due diligence. Understanding the local economy, tenant demographics, and the specifics of the voucher program can help investors make informed decisions and potentially find opportunities that align with their investment goals.
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.