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 | $320,839 | 0.48% | F |
| 3BR | $2,040 | $360,548 | 0.57% | F |
| 4BR | $2,280 | $408,461 | 0.56% | F |
| 5BR | $2,645 | $456,675 | 0.58% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 55056, North Branch, MN, stands at $95,679, providing insight into the financial capacity of households in this area. The market rate for rent, according to Census ACS data, is $1,314 per month. This figure represents the average rent paid by tenants in the area, giving landlords a benchmark for setting their own rental prices.
However, the comparison between the market rate and the Housing Choice Voucher Payment Standard becomes critical. For fiscal year 2024, the Fair Market Rent (FMR) for ZIP 55056 is set at $1,270. This means that landlords who accept vouchers will receive a monthly payment of $1,270 from the government, which is slightly below the market rate.
With only 14.9% of the 14,753 population being renters, the competition among landlords for tenants is relatively low. However, the affordability gap, defined by the difference between the median income and the cost of living, including rent, could influence the number of potential tenants seeking subsidized housing options like vouchers.
The takeaway for landlords considering whether to accept vouchers versus relying on cash-paying tenants is clear. While the voucher payment is marginally lower than the market rate, it ensures a steady and reliable income stream, mitigating the risk of vacancies. Landlords should weigh the benefits of guaranteed payments against the administrative requirements and potential turnover associated with voucher programs. Given the slight disparity between the FMR and the market rate, landlords might find a strategic advantage in accepting vouchers, especially if they aim to attract a broader range of tenants in a competitive yet sparse rental market.
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.