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 | $395,809 | 0.39% | F |
| 3BR | $2,040 | $537,294 | 0.38% | F |
| 4BR | $2,280 | $704,569 | 0.32% | F |
| 5BR | $2,645 | $857,285 | 0.31% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 55357 does not work in favor of Section 8 tenants. The Fair Market Rent (FMR) set by HUD for the Minneapolis-St. Paul-Bloomington, MN-WI area for fiscal year 2024 is $1270. However, the average market rent based on Census ACS data is significantly lower at $628. This discrepancy means that landlords might struggle to cover costs and make a profit if they rely solely on the Section 8 voucher program.
Acquisition in this area is moderately affordable. With a median home value of $522,062, purchasing property is within reach for many investors. Unfortunately, the data lacks specifics on days on market (DOM) and the percentage of homes needing price cuts to sell. Without these details, it's challenging to provide a comprehensive analysis of the affordability for acquiring properties.
Tenant demand in ZIP 55357 is low. The total population stands at 3,419, with only 5.9% of residents being renters. This indicates a limited pool of potential tenants, which could make it difficult for landlords to find Section 8 participants willing to pay the higher FMR rate.
Verdict: Investing in ZIP 55357 for Section 8 properties is not advisable due to the mismatch between HUD's FMR and the actual market rent. Additionally, the low renter share suggests that finding tenants who qualify for and are willing to participate in the Section 8 program will be challenging. Despite the median home value being relatively affordable, the overall conditions do not support a profitable or feasible investment strategy for Section 8 properties in this area.
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.