Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,310 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,620 |
| 5 Bedrooms | $3,039 |
| 6 Bedrooms | $3,404 |
| 7 Bedrooms | $3,676 |
| 8 Bedrooms | $3,860 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 55318, which includes Chaska, MN, is set at $1,650 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge a Section 8 tenant for rent. It's important to note that this is not the actual rent you'll receive; it's the benchmark used to determine eligibility and the subsidy amount.
In contrast, the average market rent in Chaska, MN, as indicated by the Zillow Observed Rent Index (ZORI), is $1,948. This suggests that if you're considering a Section 8 rental, your property will likely be rented below the market rate. However, the demand for affordable housing remains strong, with approximately 30.9% of renters in the area relying on some form of housing assistance. This high percentage indicates a steady pool of potential tenants.
To put the financials into perspective, acquiring a rental property in Chaska, MN, typically costs around $478,752. While the FMR might seem lower than the market rent, the reliability of Section 8 payments and the consistent demand for affordable housing make it a viable option for landlords. The program ensures timely payments, reducing the risk of vacancy and delinquency.
Before proceeding with a Section 8 rental, it's crucial to verify that your property meets the Housing Quality Standards (HQS). These standards ensure that the rental unit is safe, decent, and sanitary for tenants. A thorough inspection and any necessary repairs can prevent delays in securing a tenant and ensure compliance with the program requirements.
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.