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 | $1,270 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,270 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,430 | $164,101 | 0.87% | C |
| 2BR | $1,740 | $280,955 | 0.62% | D |
| 3BR | $2,270 | $317,121 | 0.72% | D |
| 4BR | $2,550 | $357,012 | 0.71% | D |
| 5BR | $2,958 | $775,190 | 0.38% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 55102, located in Saint Paul, Minnesota, involve understanding the Specific Area Fair Market Rent (SAFMR) and the local market rent dynamics. For a two-bedroom apartment in this ZIP code, the SAFMR for FY 2024 is set at $1740. This figure represents the maximum amount that a Section 8 Housing Choice Voucher will cover for rent in this specific area. However, the local market rent, as indicated by the Zillow Observed Rent Index (ZORI), is currently at $1583.
A landlord participating in the Section 8 program should be aware that the total reimbursement they receive is not solely based on the SAFMR. It includes the tenant's portion of the rent plus any utility allowances. Typically, the tenant is required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area, the tenant might contribute around $462 to the monthly rent. The remainder, up to the SAFMR, would be covered by the housing authority. In addition to the rent, utility allowances can vary but are generally around $200 per month.
To illustrate, if a tenant's portion is $462 and the utility allowance is $200, the total reimbursement a landlord could expect would be approximately $1642. This is calculated by adding the tenant's contribution ($462) and the utility allowance ($200) to the subsidy provided by the housing authority, which is the difference between the SAFMR ($1740) and the tenant's contribution ($462).
In ZIP 55102, where the local market rent is $1583, the typical reimbursement under a Section 8 voucher for a two-bedroom unit would result in a surplus for landlords. The surplus would be the difference between the reimbursement ($1642) and the local market rent ($1583), amounting to about $59 per month. This surplus provides a buffer for landlords who might otherwise be concerned about the potential shortfall when renting to Section 8 tenants.
It's important to note that these figures are illustrative and can vary depending on the specific circumstances of each tenant and the terms of the local housing authority. Nonetheless, for landlords in ZIP 55102, the economics of Section 8 tend to favor them slightly, given the current SAFMR and local market rent conditions.
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.