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 | $351,759 | 0.44% | F |
| 3BR | $2,040 | $374,355 | 0.54% | F |
| 4BR | $2,280 | $430,220 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 55074, located in Shafer, MN, is a part of Chisago County and stands out due to its unique demographic and economic characteristics. With a population of 2,393 residents, only 9.8% of whom rent their homes, it indicates a predominantly owner-occupied area. The median income of $106,625 suggests a relatively affluent community compared to national averages. However, the median home value at $361,269 is notably lower than the median income, which could imply that housing costs are more affordable relative to income levels.
Moving into the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 55074 for fiscal year 2024 is set at $1,410. This figure represents the maximum amount that landlords can charge for a rental unit under the Section 8 program. In contrast, the market rent, according to the latest Census American Community Survey (ACS), is $962. This gap between the FMR and market rent presents an opportunity for landlords who can leverage the higher FMR rates to potentially increase their rental income.
Despite the attractive economics of Section 8 vouchers in ZIP 55074, the overall data signature points towards a stable environment. The low percentage of renters and the modest median home value suggest a community where homeownership is common and there is little pressure for rapid change. While the disparity between FMR and market rent might encourage some landlords to participate in the Section 8 program, the general trend in the area is one of stability rather than transition. For small-portfolio investors considering the inclusion of Section 8 properties, ZIP 55074 offers a reliable and predictable market, with the added benefit of government-backed rental payments.
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.