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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $335,020 | 0.46% | F |
| 3BR | $2,040 | $414,056 | 0.49% | F |
| 4BR | $2,280 | $448,558 | 0.51% | F |
| 5BR | $2,645 | $595,778 | 0.44% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for a Section 8 landlord in ZIP code 55358, Maple Lake, MN, are significant. Firstly, tenant turnover poses a substantial challenge, with the market rent at $1,075 compared to the Fair Market Rent (FMR) of $1,270 for FY 2024. This discrepancy suggests that tenants who qualify for Section 8 assistance might struggle to find private-market rentals, leading to higher turnover rates as they seek more affordable options.
Vacancy exposure is another critical issue. The average Days on Market (DOM) for properties in this area is not available, which makes it difficult to predict how long a rental unit might remain vacant between tenants. Given the typical home value of $375,512 and the median income of $92,039, many local residents may find it challenging to afford housing without financial assistance, further complicating the situation for landlords seeking stable occupancy.
The deferred-maintenance exposure is also noteworthy. With the typical home value being significantly higher than the median income, landlords must be prepared for the possibility that tenants receiving Section 8 assistance may not have the resources to maintain the property beyond their basic living needs. This could lead to higher maintenance costs and the need for more frequent repairs, impacting the overall profitability of the investment.
However, these risks are offset by the high concentration of renters in the area. The renter share is 15.6%, indicating a robust demand for rental properties. High renter density often correlates with increased demand for housing vouchers, which can provide a steady stream of qualified tenants. While this does not eliminate the risks associated with tenant turnover and vacancy, it does suggest a potentially larger pool of applicants willing to use Section 8 vouchers to cover their rent.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.