Section 8 Fair Market Rent (FMR) for ZIP 55127 - 2027
Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,460 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$117,917
Housing Authorities Serving ZIP 55127
To decide if you should buy in ZIP code 55127 (Vadnais Heights, MN) for Section 8 investment, follow these steps:
- Does the Fair Market Rent (FMR) of $1820 cover the debt service on a property valued at $462,284?
- Yes: The FMR of $1820 is sufficient to cover the debt service on a property costing $462,284. This means that the rental income can support the mortgage payments and other financial obligations associated with owning the property.
- No: The FMR of $1820 does not fully cover the debt service on a property costing $462,284. You would need to assess whether additional sources of income or cost savings could make up for this shortfall.
- Is the market rent ($1,737 ZORI) above, at, or below the FMR?
- Above: If the market rent exceeds the FMR, you might consider alternative investments or properties outside the Section 8 program to maximize your rental income. However, this situation is unlikely given the provided data.
- At: If the market rent is equal to the FMR, the property will be competitive in the rental market but may not offer additional profit margins beyond covering expenses.
- Below: With the market rent at $1,737, which is below the FMR of $1820, the property is likely to attract Section 8 tenants. This makes it a viable option for landlords interested in participating in the Section 8 program.
- Are the 17.7% renters combined with a 32-day Days on Market (DOM) indicative of enough demand?
- It depends: The 17.7% of the population being renters suggests a moderate level of demand. However, the 32-day DOM indicates that properties are staying on the market for a relatively short period, which is positive. If you can manage to keep your vacancy rate low, this combination supports a reasonable demand for rental properties. Consider local trends and competition to make a final assessment.
In summary, if the FMR of $1820 covers your debt service on a property priced at $462,284, and you are comfortable with the rental income being slightly below the FMR, then ZIP 55127 could be a suitable location for a Section 8 investment. The demand appears adequate based on the percentage of renters and the DOM figure, but local market conditions should also be considered.
Data Sources: FMR data from HUD (2027). 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.