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 | $1,790 |
| 1 Bedroom | $2,020 |
| 2 Bedrooms | $2,450 |
| 3 Bedrooms | $3,200 |
| 4 Bedrooms | $3,590 |
| 5 Bedrooms | $4,164 |
| 6 Bedrooms | $4,664 |
| 7 Bedrooms | $5,037 |
| 8 Bedrooms | $5,289 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,450 | $265,107 | 0.92% | C |
| 3BR | $3,200 | $316,129 | 1.01% | B |
| 4BR | $3,590 | $353,597 | 1.02% | B |
| 5BR | $4,164 | $380,601 | 1.09% | B |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 55071, Saint Paul Park, MN, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1910 for fiscal year 2024. This SAFMR figure is specific to this ZIP code, reflecting the localized rental market conditions.
In comparison, the local market rent for a similar two-bedroom unit is recorded at $2,171 according to the Census ACS (American Community Survey). This indicates that landlords in ZIP 55071 might face a slight challenge in covering their costs if they rely solely on Section 8 vouchers, given the difference between the SAFMR and the actual market rates.
A Section 8 voucher payment to landlords consists of two parts: the tenant's portion and the utility allowance. The tenant's portion is typically around 30% to 40% of their adjusted income. For example, if a tenant has an adjusted monthly income of $1,500, they would contribute approximately $450 to $600 towards the rent. The remaining amount is covered by the housing authority up to the SAFMR limit of $1910.
The utility allowance varies but generally ranges from $200 to $300 per month. It is designed to help cover the cost of utilities such as electricity, gas, water, and sewage. This allowance is added to the voucher payment to ensure that tenants can afford both rent and utilities.
To illustrate, if a tenant contributes $500 towards rent and the utility allowance is $250, the total voucher payment would be $750. The housing authority would then pay the difference between the total voucher payment and the SAFMR, which in this case would be $1910 - $750 = $1160. Therefore, the landlord would receive a total of $1910 per month for a two-bedroom apartment.
Given these specifics, there is a potential reimbursement gap of $261 ($2,171 - $1910) for landlords renting out a two-bedroom apartment in ZIP 55071 based on the SAFMR versus the local market rent. This gap represents the shortfall landlords might experience when renting to Section 8 participants compared to market-rate tenants. However, it is important to note that the gap or surplus can vary depending on the individual tenant's contribution and the exact utility allowance.
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.