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 | $1,180 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $331,214 | 0.49% | F |
| 3BR | $2,120 | $393,202 | 0.54% | F |
| 4BR | $2,370 | $467,292 | 0.51% | F |
| 5BR | $2,749 | $532,003 | 0.52% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 55376, located in the Saint Michael, MN area of the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area, does not favor Section 8 tenancy. The Fair Market Rent (FMR) set at $1510 for fiscal year 2024 is significantly lower than the market rent indicated by the Zillow Observed Rental Index (ZORI), which stands at $1,930. This discrepancy means that landlords would receive less income through Section 8 vouchers compared to what they could earn from market-rate rentals.
Acquisition in this ZIP code is somewhat affordable, given the median home value of $425,236. However, the lack of data on days on market (DOM) and the very low price-cut share of 0.2% suggest a stable market where homes are not typically being discounted. This stability can be seen as both an advantage and a risk; it ensures that property values are consistent but also indicates limited opportunities for acquiring properties at reduced rates.
Tenant demand in ZIP 55376 is relatively modest. With a total population of 20,106, only 9.3% are renters, indicating a smaller pool of potential tenants interested in Section 8 housing. This low percentage of renters implies that finding eligible Section 8 tenants might be challenging, especially considering the limited number of vouchers available relative to the overall rental demand.
In summary, while the acquisition cost in ZIP 55376 is reasonable, the rent math does not support Section 8 tenancy due to the significant gap between FMR and market rents. Additionally, the low share of renters suggests a limited demand for subsidized housing, making it a less favorable investment for landlords and small-portfolio investors looking to capitalize on Section 8 programs. The stability of the market, however, provides assurance in property values, which could be beneficial for long-term investments outside of Section 8.
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.