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 | $1,430 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,560 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,610 | $139,314 | 1.16% | B |
| 2BR | $1,960 | $271,780 | 0.72% | D |
| 3BR | $2,560 | $311,315 | 0.82% | C |
| 4BR | $2,870 | $471,910 | 0.61% | D |
| 5BR | $3,329 | $561,057 | 0.59% | F |
U.S. Census Bureau data (2024)
58.9% of residents in ZIP code 55121 (Eagan, MN) are renters, indicating a strong demand for rental properties. This high renter share supports the market rent figure of $1,430, which is the Zillow Observed Rent Index (ZORI) for the area. Despite the median home value being $337,314, the rental market remains robust, suggesting that many residents find it more advantageous to lease rather than purchase homes.
The Fair Market Rent (FMR) for Section 8 in ZIP 55121 is set at $1720 for fiscal year 2024. This means that landlords can expect to receive a payment close to this amount per month for a standard unit under the program. Comparing this to the market rent of $1,430 shows that Section 8 can offer slightly higher returns than the average market rent, making it an attractive option for landlords seeking stable income.
However, the median income of $87,152 indicates that while there is a significant portion of the population renting, the overall economic status of the area is relatively healthy. This could imply that tenants might be able to afford higher rents outside of the Section 8 program, depending on their individual financial situations and the availability of units.
The lack of data on days on market (DOM) and the percentage of price-cut shares suggests that the rental market in Eagan, MN, is either very efficient or that such data is not widely reported. Landlords should be aware that these missing figures could mean they need to conduct additional local research to understand the true dynamics of the rental market.
In conclusion, ZIP 55121 presents a favorable environment for landlords interested in the Section 8 program due to the high FMR compared to the market rent and a substantial renter share. The program can provide steady, government-backed rental income, especially given the economic health of the area. Verdict: ZIP 55121 is suitable for Section 8 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.