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 | $324,639 | 0.47% | F |
| 3BR | $2,040 | $346,791 | 0.59% | F |
| 4BR | $2,280 | $439,895 | 0.52% | F |
| 5BR | $2,645 | $590,097 | 0.45% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 55373, located in Rockford, Minnesota within Hennepin County, can be broken down clearly. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1470. This figure is specifically tailored for this ZIP code, reflecting the localized cost of housing rather than a broader metro or county-wide average.
To understand the actual reimbursement a landlord receives, it's crucial to factor in the tenant's contribution and any utility allowances. Tenants typically pay 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,470 (the SAFMR), then the tenant would contribute approximately $441 per month. However, if the tenant's income is lower, say around $900, which is more reflective of the average income levels qualifying for Section 8, their contribution would drop to about $270.
The utility allowance is another component that varies but generally ranges from $200 to $300 per month, depending on the number of bedrooms and the region's typical energy costs. In ZIP 55373, let's use an average utility allowance of $250 for a two-bedroom unit.
Therefore, the total reimbursement a landlord might receive for a two-bedroom unit under Section 8 would be the tenant's contribution plus the utility allowance. Using the lower income estimate, this would be $270 (tenant contribution) + $250 (utility allowance) = $520. The difference between the SAFMR ($1470) and the total reimbursement ($520) leaves a significant gap of $950 per month.
It's important to note that the local market rent for a two-bedroom unit in ZIP 55373 is reported at $1,054 according to the Census ACS. This means that even though the SAFMR is higher, the actual market conditions suggest that landlords might be able to fill units without fully relying on the SAFMR rate. However, the reimbursement gap remains a critical consideration for landlords.
In summary, landlords in ZIP 55373 should expect a reimbursement gap when renting to Section 8 tenants, particularly if they aim to charge closer to the SAFMR. This gap stands at $950 per month based on the assumed lower income level and average utility allowance. Conversely, if the local market rent is considered, there is a smaller gap or even a surplus, indicating a more balanced economic scenario for landlords who price their units closer to the market rate.
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.