Section 8 Fair Market Rent (FMR) for ZIP 55303 - 2027

Investment Score for ZIP 55303

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	$1,230
1 Bedroom	$1,390
2 Bedrooms	$1,690
3 Bedrooms	$2,210
4 Bedrooms	$2,470
5 Bedrooms	$2,865
6 Bedrooms	$3,209
7 Bedrooms	$3,466
8 Bedrooms	$3,639

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	$1,390	$259,904	0.53%	F
2BR	$1,690	$302,526	0.56%	F
3BR	$2,210	$358,551	0.62%	D
4BR	$2,470	$421,611	0.59%	F
5BR	$2,865	$482,625	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 55303 (Ramsey, MN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 55303 is set by HUD for 2026, with the following figures: - 0BR: $1200 - 1BR: $1360 - 2BR: $1650 (19.2% of median household income) - 3BR: $2180 - 4BR: $2440 To understand how these FMRs compare to actual rents, we need to consider the occupancy rate and the renter percentage. The occupancy rate in Ramsey, MN is 97.3%, indicating that the housing stock is nearly fully occupied. With 24.2% of the population being renters, there is a significant demand for rental properties. However, the FMRs are fixed rates that voucher holders can use to pay for their housing, meaning that landlords must accept these rates if they wish to have tenants who use Section 8 vouchers. For example, a 2BR unit has an FMR of $1650, which is only 19.2% of the median household income of $102,986. This suggests that voucher holders are likely to be significantly below the median income level, facing substantial financial constraints. Landlords who want to attract voucher holders must ensure that their rents do not exceed the FMR limits. #### Affordability & Renter Profile Given the median household income of $102,986, the FMRs represent a relatively small portion of the typical resident's income. For instance, the $1650 FMR for a 2BR unit is only 19.2% of the median income, making it quite affordable for those above the median income level. However, for voucher holders, the FMR is the maximum amount they can pay, which means they will be looking for units priced at or below these levels. The high occupancy rate of 97.3% indicates that the market is tight, with very little excess supply. This tightness could lead to upward pressure on rents, especially for non-voucher holders. Given that 24.2% of the population are renters, the demand for rental properties is strong, but the supply is limited. This dynamic makes it challenging for voucher holders to find suitable housing, as many units may be priced above the FMR. #### Investor Angle From an investor perspective, the key question is whether investing in rental properties in ZIP code 55303 would be financially viable, particularly if focusing on Section 8 vouchers. To determine this, we need to look at the price-to-FMR ratio and the potential cash flow. The Zillow median price for a 2BR unit is $296,690, which translates to a price-to-FMR ratio of 15.0x. This means that the purchase price of a 2BR unit is 15 times its FMR. For an investor to achieve positive cash flow, the rental income must cover all expenses, including mortgage payments, property taxes, insurance, maintenance, and other costs. Assuming a 2BR unit is purchased for $296,690 and financed with a 30-year fixed-rate mortgage at an interest rate of 5%, the monthly mortgage payment would be approximately $1570. Adding property taxes (assuming 1.2% of the home value), insurance ($100/month), and maintenance ($100/month), the total monthly expenses would be around $1850. Since the FMR for a 2BR unit is $1650, this would result in a negative cash flow of about $200 per month for a Section 8 voucher holder. Therefore, from an investment standpoint, the ZIP code 55303 is not cash-flow positive at the FMR levels for Section 8 voucher holders. This makes it a less attractive option for investors who are specifically targeting Section 8 vouchers. #### Investment Grade The investment grade for ZIP code 55303 would be considered low for Section 8-focused investors due to the negative cash flow scenario described above. While the area has a strong demand for rental properties, the high purchase prices relative to the FMRs make it difficult to generate positive returns when relying solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might consider focusing on smaller units such as 0BR or 1BR apartments. These units typically have lower purchase prices and may offer better cash flow opportunities. For example, a 1BR unit with an FMR of $1360 might be more financially feasible if the purchase price is proportionally lower. 2. **Consider Non-Section 8 Tenants**: Investors should also explore the possibility of attracting non-voucher tenants who can afford higher rents. The median household income of $102,986 suggests that there is a significant portion of the population who can pay more than the FMR. A strategy that combines both Section 8 and non-Section 8 tenants could help balance the financials and improve overall cash flow. 3. **Evaluate Property Location and Condition**: In a tight market like Ramsey, MN, the location and condition of the property play a crucial role. Investors should prioritize properties in desirable locations with good amenities and minimal required renovations. This can help command slightly higher rents while still remaining competitive in the market. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors is to **Skip** ZIP code 55303. The high price-to-FMR ratio and resulting negative cash flow make it a challenging environment for generating positive returns. Instead, investors might consider areas with lower ratios or explore a mixed tenant strategy that includes both Section 8 and non-Section 8 tenants to optimize financial performance.

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.