Section 8 Fair Market Rent (FMR) for ZIP 55349 - 2027

Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area

Investment Score for ZIP 55349

F
Monthly Rent (2BR)
$1,540
Median Price (2BR)
$296,247
1% Rule
0.52%
Annual Yield
6.24%

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$1,120
1 Bedroom$1,270
2 Bedrooms$1,540
3 Bedrooms$2,040
4 Bedrooms$2,280
5 Bedrooms$2,645
6 Bedrooms$2,962
7 Bedrooms$3,199
8 Bedrooms$3,359

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,540 $296,247 0.52% F
3BR $2,040 $341,931 0.6% F
4BR $2,280 $401,907 0.57% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
3,549
Median Household Income
$99,444
Housing Units
1,714
Renter Percentage
18.0%
Occupancy Rate
89.3%
Renter Occupied
275

With a Fair Market Rent (FMR) set at $1270 for ZIP code 55349 in Howard Lake, MN, for fiscal year 2024, landlords have a clear benchmark for rental pricing. The actual market rent stands at $937 according to the latest Census ACS data, indicating a potential opportunity to adjust rents upwards to align with the FMR without significantly impacting occupancy rates. The median home value of $342,484 suggests a stable housing market, providing solid returns on investment for property owners. Renter share in the area is 18.0%, which means there's a substantial portion of the population relying on rental properties, creating a steady demand. Median income at $99,444 offers insight into the financial capacity of residents, though it does not directly correlate with the ability to pay higher rents. Unfortunately, data regarding the average days on market (DOM) and the percentage of listings that experience price cuts are currently unavailable, which might indicate a lack of recent transactions or a robust local real estate market where such metrics are less critical. Given the alignment between the FMR and the potential market adjustments, coupled with the strong median home value and stable renter demographics, Howard Lake, MN, presents a favorable environment for Section 8 participation. Landlords can expect consistent tenant support and fair rental compensation.

Section 8 Verdict: Suitable for participation, given the favorable FMR and market conditions.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.