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 | $2,070 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $380,638 | 0.4% | F |
| 3BR | $2,070 | $437,763 | 0.47% | F |
| 4BR | $2,340 | $479,250 | 0.49% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 55080, Stanchfield, MN, stands at $101,964. Considering the market rate for rent is $1,278 according to the Census ACS, it becomes evident that the typical household can comfortably afford the rental costs without financial strain. This suggests a stable tenant base with the ability to pay market rates consistently.
In contrast, the Fair Market Rent (FMR) for ZIP code 55080 in fiscal year 2024 is set at $2,090, which is significantly higher than the actual market rate. This discrepancy highlights a potential challenge for landlords seeking to attract tenants through housing vouchers. Voucher holders might find the local market more affordable than the FMR stipulated, but landlords could face difficulties in justifying the higher voucher payment to themselves.
The ZIP code has a relatively low rental rate at 11.1%, indicating that most residents are homeowners rather than renters. With a total population of 3,180, the number of potential renters is limited, leading to a competitive environment for landlords. The affordability gap between the median income and both the market rate and FMR means that landlords must carefully consider their strategy to maximize occupancy and profitability.
The takeaway for landlords is that while there is a stable pool of cash-paying tenants who can manage the current market rate, relying solely on voucher payments might not be the most effective strategy due to the high FMR compared to the actual cost of living. Landlords should evaluate the benefits of accepting vouchers against the potential for securing long-term, financially stable tenants willing to pay the market rate of $1,278.
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.