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 | $1,430 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,560 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,610 | $958,962 | 0.17% | F |
| 2BR | $1,960 | $679,326 | 0.29% | F |
| 3BR | $2,560 | $819,066 | 0.31% | F |
| 4BR | $2,870 | $1,116,439 | 0.26% | F |
| 5BR | $3,329 | $1,799,277 | 0.19% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 55391, Woodland, MN, stands at $174,301. This figure places households in a relatively strong financial position, but when considering the market rate for rent, which is $2,108 per month (ZORI), it becomes clear that a significant portion of their income would go towards housing costs. At this rate, a household would spend nearly 15% of their annual income on rent alone.
The Fair Market Rent (FMR) for ZIP 55391, as set for the fiscal year 2024, is $2,030. This is slightly below the market rate, indicating that while voucher holders might find it challenging to cover the difference between the FMR and ZORI, they still have options within the area. The fact that the FMR is close to the market rate suggests a competitive environment for landlords who accept vouchers, as they must often negotiate with other property owners to secure tenants.
With only 18.2% of the 15,502 population being renters, competition among landlords for rental properties is likely to be fierce. Landlords will need to consider the affordability gap when setting their rents and deciding whether to accept vouchers. The gap between the median income and the market rate highlights the importance of offering affordable housing options to attract and retain tenants.
For landlords weighing the decision between accepting Section 8 vouchers or focusing on cash-paying tenants, the data points to a mixed strategy as potentially beneficial. While cash-paying tenants might offer higher monthly rents, the close alignment between the FMR and ZORI indicates that voucher holders can also provide a stable source of income. Moreover, with a smaller rental pool, landlords who diversify their tenant mix may find themselves better positioned to fill vacancies and manage their properties effectively.
In conclusion, landlords in ZIP 55391 should consider both the market dynamics and the financial capabilities of potential tenants. Accepting vouchers can help bridge the affordability gap, ensuring a steady stream of tenants, while also catering to cash-paying renters who can afford the higher market rates. This balanced approach could be key to success in this competitive market.
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.