Section 8 Fair Market Rent (FMR) for ZIP 55036 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$840
1 Bedroom	$840
2 Bedrooms	$1,100
3 Bedrooms	$1,310
4 Bedrooms	$1,500
5 Bedrooms	$1,740
6 Bedrooms	$1,949
7 Bedrooms	$2,105
8 Bedrooms	$2,210

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the search results, the median home value for ZIP code 55036 is approximately $535,448. With an annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $1,100, we can derive the cap-rate and gross yield for both the Section 8 scenario and the market rent scenario.

The Section 8 FMR of $1,100 translates to an annual rental income of $13,200. Given the median home value of $535,448, the implied gross yield for a property rented under Section 8 would be about 2.46%. This calculation is derived by dividing the annual rental income by the median home value.

The market rent figure is not available; however, if we were to assume that market rents are higher than the Section 8 FMR, the gross yield would likely be greater than 2.46%. For instance, if the market rent was $1,500 per month, the gross yield would be around 3.55%, significantly higher than the Section 8 yield.

Given the 23.8% renter density in ZIP 55036, it is important to note that the demand for rental properties is relatively low compared to areas with higher renter populations. Additionally, the lack of data on the Days on Market (DOM) suggests that there may be limited recent activity in the rental market, making it difficult to gauge the current market conditions accurately.

In conclusion, while the Section 8 program provides a stable source of rental income, the gross yield is lower than what could potentially be achieved through market rents. However, due to the limited availability of market rent data and the low renter density, the Section 8 scenario might be more realistic for this area. Investors should conduct further research to understand the local rental market dynamics and make informed decisions based on their investment goals.

Note: The calculations above assume a simple gross yield formula without considering operating expenses, which would affect the Net Operating Income (NOI).

Data Sources: FMR data from HUD (2027). 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.