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 | $1,120 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $318,899 | 0.48% | F |
| 3BR | $2,040 | $426,704 | 0.48% | F |
| 4BR | $2,280 | $468,752 | 0.49% | F |
| 5BR | $2,645 | $528,430 | 0.5% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 55352, located in Jordan, Minnesota within Scott County, are driven by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment in ZIP 55352, the SAFMR for fiscal year 2024 is $1630. This figure represents the maximum amount that the federal government will reimburse landlords participating in the Housing Choice Voucher program, also known as Section 8.
In contrast, the local market rent for a similar two-bedroom unit, according to the Census American Community Survey (ACS), is $1224. This discrepancy between the SAFMR and the actual market rent can be significant when calculating the financials of renting to a Section 8 tenant.
A landlord should understand that the voucher does not cover the entire rent amount. Tenants are required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area, the tenant's portion might be around $367.20 per month, based on the local market rent. However, the exact amount depends on the individual tenant's income.
Beyond the base rent, the voucher also includes utility allowances. These allowances vary but are typically designed to cover the cost of utilities. In ZIP 55352, the utility allowance might add another $200-$300 to the total reimbursement, bringing the overall reimbursement closer to the SAFMR of $1630.
To walk through an example, if a landlord charges the market rent of $1224 and the tenant pays $367.20, the landlord would receive the difference plus any utility allowance. Assuming a utility allowance of $250, the total reimbursement would be $1574.20 ($1224 + $367.20 - $367.20 + $250). This is slightly below the SAFMR of $1630 but still provides a reasonable income stream.
The typical reimbursement gap or surplus for a two-bedroom unit in ZIP 55352 can be calculated by comparing the total reimbursement to the SAFMR. In this case, the landlord would have a surplus of $74.20 above the local market rent but a shortfall of $55.80 compared to the SAFMR. This shortfall means that landlords charging at the SAFMR level would receive less than the maximum allowable rent, while those charging at the local market rate would receive more than the tenant's share of the rent.
Landlords must consider these economic factors when deciding whether to participate in the Section 8 program. The SAFMR sets a cap on the maximum reimbursement, which can lead to a surplus or shortfall depending on the local market conditions and the specific terms of the voucher.
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.