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 | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,270 | $151,212 | 0.84% | C |
| 2BR | $1,540 | $219,650 | 0.7% | D |
| 3BR | $2,040 | $260,833 | 0.78% | D |
| 4BR | $2,280 | $291,227 | 0.78% | D |
| 5BR | $2,645 | $313,602 | 0.84% | C |
U.S. Census Bureau data (2024)
The ZIP code 55103 in Saint Paul, MN, stands out within Ramsey County due to its unique demographic and economic profile. With a population of 13,125 residents, 58.3% of whom are renters, it reflects a significant demand for rental housing. The median household income here is $48,390, which is lower than the national average but still supports a thriving rental market. Notably, the median home value in ZIP 55103 is $251,278, indicating that homeownership is relatively affordable compared to other parts of the county.
In terms of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 55103 for fiscal year 2024 is set at $1,280. This figure is slightly below the market rate, as indicated by the Zillow Observed Rent Index (ZORI), which is currently at $1,317. This suggests that landlords in this area can expect to receive a rent subsidy that is close to the actual market rates, making Section 8 vouchers a viable option for maintaining occupancy levels without significant financial loss.
The data signature for ZIP 55103 reads as stable. The relatively high percentage of renters and the modest median home values suggest a community that is comfortable with both renting and owning homes at accessible price points. Additionally, the alignment between the FMR and the ZORI indicates a balanced rental market where Section 8 vouchers can effectively support tenants without causing substantial discrepancies for landlords. For small-portfolio investors, this stability means that there is less risk associated with relying on Section 8 vouchers as a source of rental income. However, the ongoing need for affordable housing and the presence of a substantial rental population also imply that there is an opportunity to serve a significant portion of the local market with well-managed properties.
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.