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 | $1,280 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,290 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,440 | $228,139 | 0.63% | D |
| 2BR | $1,750 | $322,644 | 0.54% | F |
| 3BR | $2,290 | $441,333 | 0.52% | F |
| 4BR | $2,560 | $593,780 | 0.43% | F |
| 5BR | $2,970 | $727,953 | 0.41% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 55372, located in Prior Lake, MN, within Scott County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1660. This means that landlords participating in the Section 8 program can expect the Housing Choice Voucher to cover up to this amount for a two-bedroom rental unit.
However, the local market rent, as indicated by ZORI (Zillow Observed Rent Index), is slightly higher at $1,824. This creates a scenario where landlords might wonder about the financial implications of accepting a voucher tenant. To clarify, the total reimbursement a landlord receives from the voucher program is calculated by adding the tenant's portion of the rent and any utility allowances.
The tenant is responsible for paying approximately 30% of their adjusted income towards rent. If we assume an average adjusted income for a family of four, the tenant's contribution would be around $498, based on the SAFMR rate. Utility allowances vary but are typically around $200 per month. Therefore, the landlord would receive $498 from the tenant plus the voucher payment of $1660, minus any utility allowance.
In practice, the landlord would receive a total of $1858 ($1660 + $498 - $200) if the utility allowance is fully applied to the tenant's portion. This amount is just above the SAFMR but still below the local market rent of $1,824. Consequently, there is a small reimbursement gap of $66 per month between the voucher reimbursement and the local market rent for a two-bedroom apartment in ZIP 55372.
To summarize, while landlords in ZIP 55372 can expect to receive a steady, government-backed rental income through the Section 8 program, they should be aware of the potential reimbursement gap. Accepting a voucher tenant means receiving a guaranteed payment of $1660 from the program plus the tenant's portion, which totals $1858, leaving a minor gap of $66 compared to the local market rent. This gap must be weighed against the benefits of reduced vacancy rates and lower turnover costs when deciding whether to participate in the program.
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.