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 | $1,240 |
| 1 Bedroom | $1,400 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,490 |
| 5 Bedrooms | $2,888 |
| 6 Bedrooms | $3,235 |
| 7 Bedrooms | $3,494 |
| 8 Bedrooms | $3,669 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,400 | $372,503 | 0.38% | F |
| 2BR | $1,700 | $350,135 | 0.49% | F |
| 3BR | $2,220 | $483,739 | 0.46% | F |
| 4BR | $2,490 | $627,130 | 0.4% | F |
| 5BR | $2,888 | $825,502 | 0.35% | F |
U.S. Census Bureau data (2024)
The ZIP code 55082, located in Stillwater, MN, has a population of 36,277. With 22.0% of residents being renters, this indicates that the area is moderately renter-heavy but not dominated by renters. The median household income stands at $115,040, which places it above the national average, suggesting a relatively affluent community.
In terms of rental affordability, the typical market rent of $2,052 represents approximately 18% of the median household income. This percentage is manageable for many households, though it does suggest that a significant portion of income is dedicated to housing costs. For context, the Fair Market Rent (FMR) for the area, set at $1,590 for FY 2024, is notably lower than the market rent, indicating that there might be a gap between the subsidized rents and the actual market rates.
The disparity between the market rent and the FMR highlights the potential challenge for tenants relying on Section 8 vouchers. Given that the FMR is designed to reflect the 40th percentile of market rents, tenants with vouchers may find it difficult to secure housing at the typical market rate of $2,052. Landlords in this ZIP code should anticipate that tenants with Section 8 vouchers will require properties priced closer to the FMR level to qualify for assistance.
Based on these figures, landlords and small-portfolio investors should expect a tenant pool that includes individuals and families who may need to leverage financial assistance due to the high cost of living. These tenants will likely be seeking properties within the FMR range, making it crucial for landlords to price their units competitively if they wish to attract Section 8 voucher holders. Additionally, landlords should be prepared to navigate the administrative processes associated with accepting tenants who utilize housing vouchers.
To summarize, while Stillwater, MN (ZIP 55082) is not heavily dominated by renters, the combination of a high median income and market rent suggests that tenants with Section 8 vouchers will face challenges finding affordable housing. Landlords should price their units around the FMR of $1,590 to effectively participate in the Section 8 program and meet the needs of their tenant pool.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.