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 | $1,510 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,030 |
| 5 Bedrooms | $3,515 |
| 6 Bedrooms | $3,937 |
| 7 Bedrooms | $4,252 |
| 8 Bedrooms | $4,465 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,700 | $325,203 | 0.83% | C |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 in ZIP code 55090, it's crucial to know the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $2020 for the fiscal year 2024. This figure is specifically tailored for this ZIP code, meaning it reflects the rental conditions unique to this area.
The SAFMR is the maximum amount that the U.S. Department of Housing and Urban Development (HUD) will pay for a rental unit. However, the actual reimbursement to landlords depends on several factors, including the tenant's portion of the rent and any utility allowances. Landlords should be aware that HUD typically requires tenants to contribute 30% of their adjusted income toward the rent.
Let's break down the reimbursement process:
For example, if a tenant's adjusted income is $1500, they would contribute $450 (30%) towards the rent. In this case, the Housing Authority would reimburse the landlord the remaining $1570 ($2020 - $450), plus the utility allowance. If the utility allowance is $350, the total reimbursement would be $1920 ($1570 + $350).
The reimbursement gap or surplus is determined by comparing the SAFMR to the local market rent. Since the local market rent data is currently unavailable, we cannot provide an exact figure. However, based on historical trends, if the local market rent is higher than $2020, landlords might experience a gap where they receive less than the market value. Conversely, if the local market rent is lower, landlords could see a surplus, receiving more than what they would typically get from the market.
In ZIP 55090, landlords must prepare for potential gaps due to the SAFMR being a fixed rate set by HUD, which may not always align with the local market conditions. For a two-bedroom apartment, the gap or surplus would be the difference between $2020 and the actual local market rent.
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.