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 | $1,290 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,460 | $186,570 | 0.78% | D |
| 2BR | $1,770 | $320,973 | 0.55% | F |
| 3BR | $2,310 | $461,618 | 0.5% | F |
| 4BR | $2,590 | $613,442 | 0.42% | F |
| 5BR | $3,004 | $817,985 | 0.37% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 55116, located in the Saint Paul, MN area of the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area, does not fully align with the financial goals of Section 8 landlords. The Fair Market Rent (FMR) set at $1570 for fiscal year 2024 is slightly below the current market rent indicated by ZORI at $1616. This discrepancy means that landlords participating in the Section 8 program may not be able to cover all their expenses, including property taxes, insurance, and maintenance, solely on the basis of FMR.
Acquisition in this ZIP code is relatively affordable. With a median home value of $453,409, the cost to purchase a property is moderate. Additionally, the average Days on Market (DOM) stands at 27 days, which suggests a healthy real estate market where properties sell quickly. The low price-cut share of 0.2% further indicates that sellers are not needing to reduce their asking prices significantly to make sales, implying strong demand for homes.
Tenant demand is robust in ZIP 55116. The total population of 25,918 includes a significant 49.0% renter share. This high percentage of renters signals a large pool of potential tenants who are actively seeking housing, making it easier for landlords to fill vacancies and maintain occupancy rates.
In conclusion, while the rent math does not perfectly favor Section 8 landlords due to the slight disparity between FMR and market rent, the overall affordability of acquisitions and strong tenant demand present a balanced opportunity. Landlords should carefully manage their costs and consider the benefits of quick sales and a high number of renters when deciding to invest in this area. The median home value and rapid turnover times suggest that despite the challenges, there is a viable market for Section 8 properties in ZIP 55116.
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.