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 | $384,987 | 0.4% | F |
| 3BR | $2,040 | $443,956 | 0.46% | F |
| 4BR | $2,280 | $523,146 | 0.44% | F |
| 5BR | $2,645 | $549,435 | 0.48% | F |
U.S. Census Bureau data (2024)
Chisago City, MN's ZIP code 55013 is characterized by a modest population of 7,015 residents, with a relatively low rental rate of 23.2%. The median household income in this area stands at a robust $109,063, indicating a generally affluent community. Median home values in the area are also high, at $431,307, reflecting the overall wealth and property desirability in ZIP 55013.
The Federal Market Rent (FMR) for Section 8 vouchers in this ZIP code for fiscal year 2024 is set at $1,320. In contrast, the average market rent, according to the latest Census ACS data, is slightly higher at $1,385. This suggests that landlords who accept Section 8 vouchers will see a modest reduction in rental income compared to market rates, but the difference is minimal given the overall economic conditions of the area.
For hands-off voucher operators, ZIP 55013 presents a stable environment with a strong median income and home values, which can ensure a steady stream of tenants able to meet the voucher requirements. However, the slightly lower FMR compared to market rents means that such operators must be prepared for a marginally smaller revenue stream.
On the other hand, for hands-on value-add buyers looking to improve and potentially increase the value of their properties, the area offers an opportunity to enhance rental income beyond the FMR. Given the affluent nature of the community and the high median home values, there is potential for these investors to attract tenants willing to pay above the voucher rate, thus maximizing returns.
In summary, ZIP 55013 in Chisago City, MN is a desirable location for both hands-off and hands-on real estate investors, offering a balance between stability and growth opportunities. The median income and home values support a solid tenant base, while the slight discrepancy between FMR and market rents provides a niche for value-add strategies.
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.