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 | $1,120 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $389,669 | 0.4% | F |
| 3BR | $2,040 | $433,695 | 0.47% | F |
| 4BR | $2,280 | $484,670 | 0.47% | F |
U.S. Census Bureau data (2024)
6.6% of Center City, MN residents in ZIP code 55012 are renters, indicating a modest demand for rental properties. However, the $1420 Fair Market Rent (FMR) for zip code 55012 for fiscal year 2024 suggests that the HUD has set a reasonable benchmark for rental units in the area. This figure is slightly below the $1,594 average market rent reported by the Census Bureau's American Community Survey, which means landlords could potentially offer competitive rates while still meeting government guidelines.
The $395,176 median home value in the area reflects a stable housing market, likely due to the $101,607 median income, which supports property values and ensures a steady flow of potential tenants who can afford the local rents. The absence of data on days on market (DOM) and the percentage of homes that have had their prices cut indicates that the real estate market in Center City is not experiencing significant fluctuations or prolonged periods of unsold inventory, which bodes well for both long-term investment and short-term speculative purchases.
Investors considering Section 8 participation should note that the HUD's FMR is designed to cover a broad range of rental units, from efficiencies to four-bedroom homes. With the FMR at $1420, landlords can expect to receive payments that accurately reflect the cost of renting in ZIP code 55012. Given the market conditions and the relatively low renter share, participating in the Section 8 program can provide a reliable source of income without the risk of market volatility.
The verdict on Section 8 for Center City, MN in ZIP code 55012 is positive, as it offers a predictable income stream that aligns with the local rental market dynamics.
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.