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 | $1,220 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $289,564 | 0.58% | F |
| 3BR | $2,180 | $411,055 | 0.53% | F |
| 4BR | $2,440 | $494,370 | 0.49% | F |
| 5BR | $2,830 | $571,367 | 0.5% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 55387, Waconia, MN, include higher tenant turnover due to the gap between the market rent of $1,716 and the Fair Market Rent (FMR) of $1,510 for fiscal year 2024. This discrepancy can lead to frequent changes in occupancy, which may cause additional administrative burdens and costs associated with screening new tenants.
Vacancy exposure is another concern, as the days on market (DOM) for rental properties in the area is not available. Without this data, it's challenging to predict how long a property might remain vacant between tenancies, leading to potential financial strain during these periods.
The deferred maintenance exposure is significant given the typical home value of $457,774 and the median income of $114,511. Landlords should be prepared to invest in necessary repairs and upgrades, as the income level may not cover all the expenses involved in maintaining the property up to code without additional support.
However, these risks are offset by the high renter share of 17.8%. A higher percentage of renters often translates into greater demand for housing vouchers, making it easier to find qualified tenants who can help stabilize occupancy rates and reduce vacancy exposure.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 55387 is moderate.
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.