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 | $1,340 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,840 |
| 3 Bedrooms | $2,400 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,510 | $171,619 | 0.88% | C |
| 2BR | $1,840 | $252,095 | 0.73% | D |
| 3BR | $2,400 | $362,150 | 0.66% | D |
| 4BR | $2,690 | $449,545 | 0.6% | F |
| 5BR | $3,120 | $593,326 | 0.53% | F |
U.S. Census Bureau data (2024)
Eagan, Minnesota, located in Dakota County and identified by ZIP code 55122, stands out due to its relatively high median income and home values compared to national averages. With a population of 32,261, Eagan has a rental rate of 31.7%, indicating a significant portion of the community lives in rented properties. The median income here is $96,823, which is notably above the national median, suggesting a prosperous local economy. Additionally, the median home value in Eagan is $355,182, reflecting the area's strong real estate market.
For landlords and small-portfolio investors, understanding the voucher economics is crucial. In Eagan, the Fair Market Rent (FMR) for a Section 8 voucher in fiscal year 2024 is set at $1,740. This amount is higher than the market rent, measured by the Zillow Observed Rental Index (ZORI), which is $1,627. This means that landlords who accept Section 8 vouchers can expect to receive slightly more than the average market rent, making it a financially viable option for those looking to secure tenants.
The data signature for Eagan suggests a stable environment. The median income and home values indicate a steady economic condition, while the slight premium on FMR over market rent shows a balanced approach to housing assistance. For investors, this stability provides a reliable backdrop for investment decisions, ensuring consistent returns and tenant satisfaction. Eagan's real estate landscape is one where both market dynamics and government subsidies align favorably, creating an attractive opportunity for those interested in the rental sector.
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.