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 | $1,550 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,780 |
| 4 Bedrooms | $3,120 |
| 5 Bedrooms | $3,619 |
| 6 Bedrooms | $4,053 |
| 7 Bedrooms | $4,377 |
| 8 Bedrooms | $4,596 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,750 | $130,054 | 1.35% | A |
| 2BR | $2,130 | $300,394 | 0.71% | D |
| 3BR | $2,780 | $470,713 | 0.59% | F |
| 4BR | $3,120 | $611,740 | 0.51% | F |
| 5BR | $3,619 | $887,223 | 0.41% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 55305, Minnetonka, MN, in fiscal year 2024 is set at $2,050. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 Housing Choice Voucher program. It's important to note that this is not necessarily the rent you will receive; it's the benchmark used to determine the maximum allowable rent for subsidized housing.
In comparison, the local Zillow Rent Index (ZORI) for ZIP 55305 stands at $1,956. This index reflects the average rent charged for non-subsidized properties in the area. The difference between the FMR and the ZORI suggests that Section 8 vouchers can provide a slightly higher rent than the market average, which may be beneficial for landlords looking to secure a steady income source.
The 42.5% renter share indicates that nearly half of the households in Minnetonka are renters, creating a strong demand for rental properties. This high percentage of renters supports the viability of offering your property under the Section 8 program, as there is a significant pool of potential tenants who may qualify for assistance.
When considering the acquisition cost of a property in this ZIP code, the median home value is approximately $460,413. This figure can help you evaluate whether the long-term benefits of participating in the Section 8 program outweigh the initial investment required to purchase or prepare a property for rental.
Before proceeding with your first Section 8 rental, ensure that your property meets all local housing quality standards. These requirements, known as the Housing Quality Standards (HQS), must be satisfied to qualify for the program. They cover essential aspects such as heating, plumbing, electrical systems, and overall safety and habitability.
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.