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 | $445,870 | 0.35% | F |
| 3BR | $2,040 | $556,253 | 0.37% | F |
| 4BR | $2,280 | $870,656 | 0.26% | F |
| 5BR | $2,645 | $1,182,582 | 0.22% | F |
U.S. Census Bureau data (2024)
The ZIP code 55359, located in Independence, MN, stands out within Hennepin County due to its unique demographic and economic characteristics. With a total population of 6,997, it has a relatively low rental rate of 15.0%, indicating that most residents own their homes. The median household income in this area is $129,250, which is higher than the national average, reflecting a prosperous community. Furthermore, the median home value of $603,587 is significantly above the national median, suggesting a strong local real estate market.
Turning to the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 55359 in fiscal year 2024 is set at $1370. This figure contrasts with the Census Bureau's American Community Survey (ACS) estimate of the market rent at approximately $1,200. For landlords, this means that the Section 8 program offers slightly higher rents than the current market rate, potentially making participation in the program financially attractive.
Based on the data signature of ZIP 55359, the overall trend appears stable. The high median income and home values suggest a solid economic foundation, while the low rental rate indicates a predominantly owner-occupied community. These factors point to a steady environment where property values are likely to remain consistent, and the demand for housing, both owned and rented, is supported by a financially secure resident base. However, landlords should monitor any changes in the local economy and housing market trends to ensure continued stability.
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.