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 | $1,140 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,560 | $430,310 | 0.36% | F |
| 3BR | $2,040 | $463,127 | 0.44% | F |
| 4BR | $2,280 | $533,874 | 0.43% | F |
| 5BR | $2,645 | $622,049 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 55327 in Dayton, MN stands out within Hennepin County due to several key factors. With a population of 6,016 residents, it has a relatively low rental rate of 4.7%, indicating that most residents own their homes. The median income in the area is $140,366, which is notably higher than the national average, and the median home value is $495,977, reflecting a strong local economy and property market.
In terms of Section 8 housing, the Fair Market Rent (FMR) for ZIP 55327 is set at $1,860 for fiscal year 2024. This figure is significantly higher than the actual market rent, which according to the Census American Community Survey (ACS), averages around $1,313. This disparity suggests that landlords in this area could potentially receive higher rental payments through the Section 8 program compared to the typical market rates, making it an attractive option for those willing to participate.
The data signature for ZIP 55327 indicates a stable environment. High median incomes and home values suggest a financially secure community where homeownership is prevalent. Despite the low rental rate, the substantial difference between the FMR and market rent provides a compelling incentive for landlords to consider Section 8 tenants, ensuring a steady and reliable income stream without the risk of lower market rents.
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.