Section 8 Fair Market Rent (FMR) for ZIP 55113 - 2027

Investment Score for ZIP 55113

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,280
1 Bedroom	$1,450
2 Bedrooms	$1,760
3 Bedrooms	$2,300
4 Bedrooms	$2,580
5 Bedrooms	$2,993
6 Bedrooms	$3,352
7 Bedrooms	$3,620
8 Bedrooms	$3,801

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,450	$123,170	1.18%	B
2BR	$1,760	$273,699	0.64%	D
3BR	$2,300	$380,571	0.6%	D
4BR	$2,580	$448,859	0.57%	F
5BR	$2,993	$532,633	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 55113 (Roseville, MN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 55113 in Roseville, MN, as of 2026, is set at $1700 for a two-bedroom unit. This amount represents 23.5% of the median household income of $86,792, indicating that it is a reasonable benchmark for affordability in the area. However, the actual rental market dynamics show a different picture. According to Zillow, the median price for a two-bedroom unit in this ZIP code is $265,925, which translates to a price-to-FMR ratio of 13.0x. This means that the actual rent for a two-bedroom unit would be significantly higher than the FMR, likely around $22,100 annually ($1700 * 13). For Section 8 voucher holders, this presents a significant constraint, as they can only afford units up to the FMR limit. Thus, voucher holders may struggle to find suitable housing options in this market due to the high actual rents compared to the FMR. #### Affordability & Renter Profile In ZIP code 55113, 34.4% of the population are renters, suggesting a moderate demand for rental properties. The occupancy rate stands at 93.0%, indicating a relatively tight rental market where most available units are occupied. Given the high price-to-FMR ratio, it is evident that the market is not particularly affordable for low-income renters. The median household income of $86,792 suggests that the typical resident has a decent financial standing, but those relying on Section 8 vouchers will face challenges in finding affordable housing. The high ratio also implies that there is a substantial gap between the FMR and the actual market rents, making it difficult for voucher holders to secure housing without assistance from landlords willing to accept lower rents. #### Investor Angle From an investor perspective, the ZIP code 55113 offers mixed prospects. The FMR for a two-bedroom unit is $1700, which is considerably lower than the actual median rent implied by the price-to-FMR ratio. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical operating costs and mortgage payments. Assuming an average annual operating cost of 50% of the rent and a mortgage payment of approximately 1.5% of the property value, the total annual cost for a two-bedroom unit priced at $265,925 would be around $13,296 ($265,925 * 0.05) for operating expenses and $3,989 ($265,925 * 0.015) for mortgage payments, totaling $17,285. At an FMR of $1700 per month, the annual rental income would be $20,400, resulting in a net positive cash flow of about $3,115 per year. However, this calculation assumes the property is rented out at the FMR, which is unlikely given the high price-to-FMR ratio. Therefore, investors should expect lower cash flows unless they can secure tenants paying above the FMR. The investment grade for this ZIP code is moderate to low, considering the tight rental market and the high price-to-FMR ratio. Investors should carefully evaluate the potential for long-term appreciation and the stability of rental demand before committing to purchases in this area. #### Specific Actionable Insights 1. **Focus on Units Below FMR**: Investors should target properties that can be rented below the FMR to attract Section 8 voucher holders. For example, a two-bedroom unit priced at $1500 per month would be more attractive to voucher holders and could still generate a modest profit if the property value is lower than the median. 2. **Consider Multi-Family Properties**: Multi-family properties often have economies of scale that can help offset the lower rents associated with FMR. A multi-unit building with several units rented at or below FMR could provide a more stable cash flow than single-family homes. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help ensure a steady stream of Section 8 voucher holders. These authorities can provide guidance on how to navigate the complexities of accepting vouchers and may offer incentives for landlords who participate. #### Bottom Line For Section 8-focused investors, ZIP code 55113 presents a challenging but potentially rewarding market. While the high price-to-FMR ratio makes it difficult to find units that fit within the FMR limits, there are opportunities for those willing to work within these constraints. The recommendation is to **Hold** investments in this ZIP code, focusing on properties that can be rented below the FMR and exploring multi-family options to maximize cash flow. Engaging with local housing authorities can also help mitigate some of the risks associated with accepting Section 8 vouchers. Overall, while the market is tight and less affordable for low-income renters, strategic investments can still yield positive returns.

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.