Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The median income in ZIP code 55085 stands at $107,500, which provides a solid financial foundation for residents. However, when considering the market rate for rent, which is $1,208 according to the latest Census ACS data, the affordability becomes a critical issue. This figure represents a significant portion of an average household's monthly income, especially when accounting for other living expenses.
In comparison, the Federal Market Rent (FMR) standard for ZIP 55085 in fiscal year 2024 is set at $1,270. This means that households receiving Section 8 vouchers would be able to pay slightly above the market rate, but still close to it. Given the relatively low percentage of renters—only 9.2% of the 371 population—the competition among landlords for tenants is likely to be intense. Landlords must consider both the number of potential renters and their ability to meet the rental demands.
The affordability gap between the median income and the rent prices highlights the challenge faced by renters in ZIP 55085. For landlords, this means that while cash-paying tenants might be fewer, they could offer more stable and higher rents than those relying on voucher programs. The key takeaway is that landlords should weigh the benefits of accepting Section 8 vouchers, which ensures consistent rent payments albeit at a rate just above the market, against the possibility of attracting cash-paying tenants who can afford higher rents but are less numerous. Strategic planning will be essential to navigate the local rental market effectively.
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.