Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,310 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,630 |
| 5 Bedrooms | $3,051 |
| 6 Bedrooms | $3,417 |
| 7 Bedrooms | $3,690 |
| 8 Bedrooms | $3,875 |
U.S. Census Bureau data (2024)
The ZIP code 55077, located in Inver Grove Heights, MN, stands out within Dakota County due to its unique mix of homeownership and rental rates. With a total population of 14,503 residents, 38.6% live in rented properties, while the remaining majority own their homes. The median household income in this area is $111,967, reflecting a relatively affluent community. The median home value in ZIP 55077 is $563,380, indicating that homeownership is a significant factor in the local economy.
When it comes to Section 8 vouchers, the Fair Market Rent (FMR) for ZIP 55077 in fiscal year 2024 is set at $1,610, which is notably lower than the market rent as measured by ZORI (Zillow Observed Rent Index), currently at $1,901. This discrepancy means that landlords who accept Section 8 vouchers can expect to receive less rent compared to the market rate, but they also benefit from the stability and security that government-backed housing assistance provides. Landlords should consider the long-term benefits of consistent rental payments and tenant support services when deciding whether to participate in the Section 8 program.
The data signature for ZIP 55077 suggests a stable environment. The high median income and home values indicate a strong economic foundation, while the significant portion of renters shows an ongoing demand for affordable housing options. Given these factors, landlords and small-portfolio investors in Inver Grove Heights can anticipate steady conditions, with a reliable pool of potential tenants and a predictable market. However, the gap between FMR and market rent highlights the importance of strategic decision-making regarding participation in the Section 8 program.
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.