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 | $1,620 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,220 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,250 |
| 5 Bedrooms | $3,770 |
| 6 Bedrooms | $4,222 |
| 7 Bedrooms | $4,560 |
| 8 Bedrooms | $4,788 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,220 | $407,888 | 0.54% | F |
| 3BR | $2,900 | $563,158 | 0.51% | F |
| 4BR | $3,250 | $1,024,959 | 0.32% | F |
| 5BR | $3,770 | $1,637,760 | 0.23% | F |
U.S. Census Bureau data (2024)
1950 is the Fair Market Rent (FMR) for ZIP code 55356, Orono, MN, for fiscal year 2024, indicating the maximum amount Section 8 participants can pay towards their housing costs. However, the actual market rent, known as the Zillow Observed Rent Index (ZORI), stands at 2971, suggesting landlords could potentially command higher rents outside of Section 8. The median home value in this area is 795573, reflecting a relatively affluent neighborhood where property values are high. Renter share in Orono is 12.8%, meaning nearly one out of every eight residents is a renter, which could influence the demand for rental properties. The median income here is 156622, providing insight into the financial capacity of potential tenants. While the exact days on market (DOM) for rentals is not available, the price-cut share is only 0.1%, implying that once listed, properties in this ZIP code are likely to be rented quickly without needing to reduce the asking price. Given these factors, the Section 8 program's cap of 1950 per month would represent a significant discount compared to the market rent of 2971. This makes it challenging for landlords to cover expenses such as maintenance, utilities, and property taxes with Section 8 participants alone. Therefore, while the program remains an option, it is advisable for landlords to consider other rental sources to maximize profitability in the 795573 median home value market of Orono.
Section 8 Verdict: Not recommended due to the substantial gap between FMR and 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.