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 | $1,150 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,300 | $246,383 | 0.53% | F |
| 2BR | $1,580 | $330,640 | 0.48% | F |
| 3BR | $2,060 | $388,514 | 0.53% | F |
| 4BR | $2,310 | $448,971 | 0.51% | F |
| 5BR | $2,680 | $512,239 | 0.52% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP 55398, Zimmerman, MN, in fiscal year 2024 is set at $1,690. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the actual rent you will receive; it's the benchmark used to determine the subsidy amount.
In comparison, the local market rent for a two-bedroom apartment in ZIP 55398 is approximately $1,737, according to the ZORI (Zillow Observed Rent Index). This suggests that the FMR is slightly below the market rate, meaning you might be able to attract tenants who qualify for Section 8 but would also consider paying a bit more out-of-pocket.
The 9.7% renter share indicates that nearly 10% of households in the area are renters. This shows a steady demand for rental properties, making it likely that your property will be occupied. With an average acquisition cost of $385,216 for a typical rental property in this ZIP code, it’s crucial to ensure that the property meets all eligibility requirements for the Section 8 program.
Before proceeding with a Section 8 rental, verify that your property complies with the Housing Quality Standards (HQS). These standards ensure that the rental unit is safe, decent, and sanitary. A thorough inspection can prevent delays and ensure that you meet the necessary criteria to participate in the program.
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.