Section 8 Fair Market Rent (FMR) for ZIP 55379 - 2027

Investment Score for ZIP 55379

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,380
1 Bedroom	$1,560
2 Bedrooms	$1,890
3 Bedrooms	$2,470
4 Bedrooms	$2,770
5 Bedrooms	$3,213
6 Bedrooms	$3,599
7 Bedrooms	$3,887
8 Bedrooms	$4,081

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,890	$263,534	0.72%	D
3BR	$2,470	$357,391	0.69%	D
4BR	$2,770	$475,514	0.58%	F
5BR	$3,213	$567,512	0.57%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 55379 (Shakopee, MN) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 55379, as per the 2026 data, is set at $1860 for a two-bedroom unit. This represents approximately 21.0% of the median household income in the area, which stands at $106,312. However, the actual rent for a two-bedroom unit can be significantly higher, with Zillow reporting a median price of $265,368. The price-to-FMR ratio for a two-bedroom unit is 11.9x, indicating that actual market rents far exceed the FMR. This discrepancy presents significant constraints for voucher holders. For instance, a voucher holder would find it challenging to secure a two-bedroom unit at the Zillow median price because the voucher amount ($1860) is only a fraction of what is typically charged in the market. Consequently, voucher holders might struggle to find suitable housing within their budget, especially if landlords do not accept vouchers due to the perceived administrative burden. #### Affordability & Renter Profile Given the high median household income of $106,312, the population in ZIP 55379 is relatively affluent. Despite this, 25.3% of households are renters, suggesting a diverse mix of residents including families, young professionals, and retirees who prefer renting over buying. The occupancy rate of 96.6% indicates that the rental market is quite tight, with few vacant units available. This tightness likely contributes to the high rent prices relative to FMR. The high price-to-FMR ratio suggests that the market is not particularly affordable for low-income renters, especially those relying on Section 8 vouchers. Given the limited supply of units and the high demand, it is reasonable to infer that landlords have the upper hand in setting rent prices. Therefore, the rental market is more favorable to landlords and less so to tenants, particularly those with vouchers. #### Investor Angle From an investor perspective, the ZIP code 55379 offers a potentially lucrative opportunity, but with caveats. The FMR for a two-bedroom unit is $1860, while the actual median rent price is $265,368. This implies that investors could achieve better cash flow by targeting the broader rental market rather than focusing solely on Section 8 vouchers. However, if an investor is willing to accept Section 8 vouchers, they would need to ensure that the property’s rent is competitive enough to attract voucher holders, while also being mindful of the administrative requirements associated with the program. Investment grade in this market would likely be high due to the strong demand and relatively high rents. However, the challenge lies in finding properties that can be rented out at rates close to the FMR without sacrificing profitability. Investors should consider the balance between accepting vouchers and maximizing cash flow through market-rate rentals. #### Specific Actionable Insights 1. **Target Market-Rate Rentals**: Given the high price-to-FMR ratio, investors should focus on securing tenants willing to pay market rates. A two-bedroom unit priced at $265,368 would likely yield better returns compared to accepting a voucher at $1860. 2. **Consider Mixed Strategies**: To maximize occupancy and cash flow, investors might want to adopt a mixed strategy where some units are rented at market rates, while others are offered to voucher holders. This approach can help maintain a steady stream of income and comply with local housing regulations. 3. **Evaluate Property Management Costs**: Accepting Section 8 vouchers involves additional administrative costs and compliance measures. Investors should carefully evaluate these costs against potential rental income to determine if the investment is financially viable. #### Bottom Line For Section 8-focused investors, the recommendation is to **skip** this ZIP code. The high price-to-FMR ratio and tight rental market make it challenging to find properties that can be rented profitably at FMR levels. Instead, investors should consider areas with lower ratios and more affordable housing options. If investing in ZIP 55379, a **hold** or **market-rate rental** strategy would be more advisable to ensure financial viability and avoid the complexities associated with Section 8 vouchers.

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.