Section 8 Fair Market Rent (FMR) for ZIP 55117 - 2027

Investment Score for ZIP 55117

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	$1,120
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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,270	$132,462	0.96%	C
2BR	$1,540	$231,457	0.67%	D
3BR	$2,040	$308,428	0.66%	D
4BR	$2,280	$365,904	0.62%	D
5BR	$2,645	$425,621	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 55117 (Saint Paul, MN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 55117 in Saint Paul, MN, as of 2026 is set at $1520 for a two-bedroom unit. This amount represents 25.8% of the median household income of $70,771 in the area. However, it is important to note that the actual rent prices in the market can be significantly higher. For instance, the Zillow median price for a two-bedroom unit is $231,817, which translates to a price-to-FMR ratio of 12.7x. This means that the actual rental prices are likely to be much higher than the FMR, creating a significant constraint for voucher holders. They will find it challenging to secure housing that meets their needs within the budget allowed by their vouchers. #### Affordability & Renter Profile ZIP code 55117 has a population of 44,697, with 38.7% of residents being renters. The occupancy rate stands at 94.5%, indicating a relatively tight rental market. Given the high occupancy rates and the large percentage of renters, there is a strong demand for rental properties. However, the affordability issue is stark. With the FMR for a two-bedroom unit at $1520, only 25.8% of the median household income, many renters might struggle to find affordable housing, especially those relying on Section 8 vouchers. The high price-to-FMR ratio suggests that the market is not particularly affordable for low-income households, making it difficult for them to find suitable accommodation. #### Investor Angle From an investor perspective, the ZIP code 55117 presents a mixed picture. The FMR for a two-bedroom unit is $1520, but the actual market rent is likely to be much higher given the price-to-FMR ratio of 12.7x. This implies that investors who can secure rental properties at or below the FMR levels could potentially achieve positive cash flow. However, the challenge lies in finding units that are priced at or near the FMR. Given the tight market conditions and the high actual rental prices, securing such units might be difficult. In terms of investment grade, the ZIP code appears to be moderately attractive due to the strong demand for rental properties. However, the limited availability of units at FMR levels could make it challenging for investors to fully leverage the benefits of Section 8 vouchers. Additionally, the high price-to-FMR ratio indicates that the market is not particularly affordable, which could limit the pool of potential tenants who can afford to live in the area. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring properties that are priced at or below the FMR levels. Specifically, targeting one-bedroom units ($1250) and two-bedroom units ($1520) could provide a better chance of attracting Section 8 voucher holders while maintaining positive cash flow. 2. **Consider Renovation Projects**: Given the high price-to-FMR ratio, investors might consider purchasing older properties at lower prices and renovating them to meet modern standards. This approach could help in securing tenants who are looking for affordable yet quality living spaces. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide insights into the demand for Section 8 vouchers in the area. This can help investors understand the specific needs of voucher holders and tailor their offerings accordingly. #### Bottom Line For Section 8-focused investors, the ZIP code 55117 presents a challenging but potentially rewarding market. While the tight rental market and high occupancy rates indicate strong demand, the high actual rental prices relative to FMR suggest that finding units at FMR levels will be difficult. Therefore, the recommendation is to **Hold** investments in this ZIP code if they already have properties at or near FMR levels. Otherwise, investors should carefully evaluate the potential to acquire and renovate properties to align with FMR guidelines before making any new investments.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.