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)
100.0% of the households in ZIP 55111 are renters, indicating a strong demand for rental properties. $1270 is the Fair Market Rent (FMR) set by HUD for zip code 55111 for fiscal year 2024, which is the maximum amount a landlord can charge for a unit under the Section 8 program. In comparison, the average market rent in the area, according to the Census ACS, is $968, suggesting that Section 8 rates are above the local market average. This discrepancy between the FMR and the actual market rent makes Section 8 a particularly attractive option for landlords in this region, as it allows them to receive higher rents than they might otherwise. The lack of data on median home values, median income, days on market (DOM), and the percentage of price-cut shares indicates that these metrics may not significantly impact investment decisions in this context. However, the high renter share combined with favorable Section 8 rates presents a clear opportunity for landlords and small-portfolio investors looking to capitalize on the robust rental market. With the FMR being notably higher than the typical market rent, the financial benefits of participating in the Section 8 program are evident. Given the high proportion of renters and the absence of significant competition from homeownership, landlords in ZIP 55111 can expect steady occupancy and reliable income streams through Section 8. Therefore, the Section 8 verdict for ZIP 55111 is a strong recommendation for participation.
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.