Location: Rice 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 |
|---|---|---|---|---|
| 1BR | $1,270 | $353,109 | 0.36% | F |
| 2BR | $1,540 | $319,449 | 0.48% | F |
| 3BR | $2,040 | $387,089 | 0.53% | F |
| 4BR | $2,280 | $479,122 | 0.48% | F |
| 5BR | $2,645 | $547,353 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 55057, located in Northfield, Minnesota, has a population of 25,650, with 25.7% being renters. This indicates that while there is a significant number of renters, the area is not heavily dominated by rental properties. The median household income stands at $92,622, which provides a benchmark for assessing the affordability of rents.
The market rent in this area is $1,766, representing approximately 19% of the median household income. This percentage suggests that the typical rent is relatively affordable for most households, though it still constitutes a substantial portion of their monthly budget. In comparison, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,270, indicating that the actual market rent exceeds the FMR by about $496, or 40%. This difference highlights the premium that landlords can charge over the FMR in this area.
The voucher demand in ZIP 55057 is moderate given the percentage of renters. However, due to the higher market rent compared to the FMR, landlords should anticipate that tenants using Section 8 vouchers might find it challenging to cover the remaining balance of the rent on their own. As such, landlords must consider the potential for lower vacancy rates but also be prepared to adjust their expectations regarding the total rent collected.
A landlord in Northfield should expect tenants who are likely to be financially stable enough to afford the market rent without relying solely on voucher assistance. These tenants may include young professionals, students from nearby institutions, and families seeking affordable housing options. Landlords will need to ensure that their rental units meet the criteria for Section 8 eligibility, including passing inspection standards and maintaining competitive rents that align with the FMR while still allowing for a reasonable profit margin.
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.