Location: Goodhue County, 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 | $289,400 | 0.53% | F |
| 3BR | $2,040 | $373,094 | 0.55% | F |
| 4BR | $2,280 | $443,136 | 0.51% | F |
| 5BR | $2,645 | $554,496 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 55033, which encompasses Hastings, MN, reveals a slight disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1420, while the Zillow Rent Index (ZORI) indicates a market rent of $1416. This means the FMR is $4 higher than the market rent, representing a negligible difference of 0.28%.
In this context, where only 19.6% of residents are renters and the median home value is $380,689, landlords might initially view the market as less favorable for rental properties. However, the median income in Hastings, MN, is $103,988, suggesting that there is a significant disposable income among the population, which can be leveraged through the Section 8 program.
The gap between the FMR and market rent makes this area a yield play for voucher tenants. Landlords who participate in the Section 8 program can expect a guaranteed rental income, which is slightly above the current market rate. This stability is particularly beneficial given the low percentage of renters in the area, as it ensures a steady stream of income without the risk of vacancies.
Moreover, the Section 8 program provides a reliable source of tenants who are vetted and have their rent subsidized by the government. This reduces the burden on landlords to cover the shortfall if the FMR were significantly lower than the market rent. Instead, the FMR being marginally higher means landlords can achieve a better return on investment, especially when considering the costs associated with maintaining and managing rental properties.
In Hastings, MN, participating in the Section 8 program allows landlords to capitalize on the slight premium offered by the FMR over the market rent. Given the local economic conditions, this strategy can be a sound financial decision, ensuring a stable and predictable income stream for those willing to engage with the program's requirements and processes.
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.