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 | $1,180 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,330 | $179,381 | 0.74% | D |
| 2BR | $1,620 | $273,268 | 0.59% | F |
| 3BR | $2,120 | $361,550 | 0.59% | F |
| 4BR | $2,370 | $499,623 | 0.47% | F |
| 5BR | $2,749 | $725,638 | 0.38% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 55118, which includes West Saint Paul, Minnesota, is set at $1570 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, known officially as the Housing Choice Voucher Program. It's important to note that this is not the actual rent you will receive; it's the ceiling on what you can charge.
In comparison, the local Zillow Observed Rental Index (ZORI), which reflects typical market rents, stands at $1,443. This suggests that the FMR is slightly above the average market rate, which could be beneficial for landlords participating in the program.
The demand for rentals in this area is strong, with 34.9% of residents being renters. This high percentage indicates a significant portion of the population relies on rental housing, making it a viable option for those considering their first Section 8 property.
When looking to acquire a property in ZIP 55118, keep in mind that the median home value is approximately $364,231. This figure gives you an idea of the investment required to enter this market. However, it's crucial to understand that the FMR does not cover the entire cost of owning a property. Landlords must ensure that the monthly payments align with their overall financial goals and property expenses.
Before committing to a Section 8 rental, verify that the property meets all the necessary housing quality standards. These standards, often referred to as the Housing Quality Standards (HQS), are set by the Department of Housing and Urban Development (HUD) and must be met for the property to qualify for the program. This ensures that the property is safe, decent, and sanitary, which is a requirement for any Section 8 rental agreement.
By understanding these key figures and ensuring your property complies with HQS, you can make an informed decision about entering the Section 8 market in ZIP 55118.
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.