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 | $1,380 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,770 |
| 5 Bedrooms | $3,213 |
| 6 Bedrooms | $3,599 |
| 7 Bedrooms | $3,887 |
| 8 Bedrooms | $4,081 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,890 | $352,122 | 0.54% | F |
| 3BR | $2,470 | $429,898 | 0.57% | F |
| 4BR | $2,770 | $481,264 | 0.58% | F |
| 5BR | $3,213 | $528,142 | 0.61% | D |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord in ZIP 55079 in Stacy, MN, include high tenant turnover and significant vacancy exposure. The market rent for the area is currently unavailable, but the Fair Market Rent (FMR) for FY 2024 is set at $1550. This can lead to challenges in retaining tenants who might be accustomed to lower rental rates through vouchers. Additionally, the days on market (DOM) for vacant properties is also not available, which makes it difficult to predict how long a property might remain unoccupied. This uncertainty increases the risk of financial loss due to extended vacancy periods.
The deferred maintenance exposure is another critical concern. With a typical home value of $411,162 and a median household income of $114,614, the financial strain on tenants to maintain their homes beyond basic requirements can be considerable. This could result in higher maintenance costs for landlords, especially when dealing with the budget constraints often associated with Section 8 tenants. Landlords must be prepared to handle these additional expenses without the possibility of passing them onto the tenants.
However, the high renter share of 7.3% in Stacy, MN, provides a counterbalance to these risks. A higher concentration of renters typically translates into greater demand for rental properties, including those that accept Section 8 vouchers. This increased demand can help mitigate the risks of vacancy and ensure a steady stream of potential tenants.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter density in ZIP 55079 suggests a moderate risk environment for a first-time Section 8 landlord. The key to success will lie in managing expectations and preparing for the unique demands of this type of investment.
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.