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 | $1,280 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,300 |
| 4 Bedrooms | $2,580 |
| 5 Bedrooms | $2,993 |
| 6 Bedrooms | $3,352 |
| 7 Bedrooms | $3,620 |
| 8 Bedrooms | $3,801 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,450 | $151,423 | 0.96% | C |
| 2BR | $1,760 | $278,947 | 0.63% | D |
| 3BR | $2,300 | $553,895 | 0.42% | F |
| 4BR | $2,580 | $1,021,581 | 0.25% | F |
| 5BR | $2,993 | $1,269,294 | 0.24% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 55403 in Minneapolis, Minnesota, for fiscal year 2024 is set at $1630. This figure represents the maximum amount that a landlord can receive through the Section 8 Housing Choice Voucher program for renting a unit in this area. It's important to note that this is not the actual rent you would charge your tenants; it's the reimbursement limit from the government.
To put this into perspective, the Zillow Observed Rent Index (ZORI) for ZIP 55403 currently stands at $1402. This means that the average rent for a property in this area is below the FMR, indicating that properties meeting the FMR criteria could be rented out at a higher rate than the market average. However, as a landlord participating in Section 8, you will be reimbursed up to $1630 per month, not the full market value.
The demand for rental properties in this area is strong, with 75.0% of residents being renters. This high percentage suggests a robust market for rentals, particularly for those who might qualify for Section 8 assistance. If you're considering entering the Section 8 rental market, this demand indicates a steady stream of potential tenants.
In terms of investment, the median home value in ZIP 55403 is approximately $199,210. This figure gives you an idea of the acquisition cost for a typical property in the area. While this is the median price, it's a useful benchmark when evaluating whether a property is worth purchasing for a Section 8 rental portfolio.
Before making the decision to accept a Section 8 tenant, ensure that the property meets all necessary housing quality standards (HQS). These standards are set by the Department of Housing and Urban Development (HUD) and must be met to qualify for participation in the program. The HQS requirements cover a range of issues including safety, habitability, and structural integrity. A thorough inspection and any necessary repairs can prevent delays in the voucher approval process and ensure compliance with HUD regulations.
In summary, the FMR of $1630 provides a clear guideline for the reimbursement limit, while the ZORI of $1402 shows that you can potentially rent above the market average. With 75.0% of residents being renters, there is significant demand for rental units. For a typical property in ZIP 55403, you can expect to pay around $199,210. To proceed, verify that your property meets HUD's HQS requirements.
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.