Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The rent math in ZIP 55040, located in the Isanti, MN area within the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR region, does not align perfectly. The Fair Market Rent (FMR) set at $1480 for fiscal year 2024 is higher than the current market rent, which stands at $1,345 according to ZORI (Zillow Observed Rent Index). This suggests that landlords could potentially attract Section 8 tenants by setting rents slightly above the market rate but within the FMR guidelines.
Acquisition in this ZIP code is relatively affordable. With a median home value of $328,147, potential investors can secure properties without breaking the bank. Additionally, the average days on market (DOM) of 42 days indicates a moderately quick turnover for listings, which is favorable for investors looking to purchase quickly. The low price-cut share of 0.2% suggests that sellers are generally not having to lower their asking prices significantly, implying a stable housing market.
Tenant demand is moderate in ZIP 55040. The population of 14,837 includes a 10.7% renter share, indicating a steady pool of potential tenants. However, the relatively small renter base means competition for Section 8 tenants could be high, necessitating a well-managed property to attract and retain them.
Verdict: While the rent math shows a slight misalignment between market and FMR rates, it still offers an opportunity for landlords to participate in the Section 8 program. Acquisition costs are reasonable, supported by a stable market with quick property turnovers. Tenant demand exists, though it is limited by the small renter population. For landlords and small-portfolio investors, ZIP 55040 presents a balanced scenario where strategic management and pricing can lead to successful Section 8 participation.
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.