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 | $1,660 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,340 |
| 5 Bedrooms | $3,874 |
| 6 Bedrooms | $4,339 |
| 7 Bedrooms | $4,686 |
| 8 Bedrooms | $4,920 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,880 | $187,835 | 1% | B |
| 2BR | $2,280 | $329,813 | 0.69% | D |
| 3BR | $2,980 | $478,998 | 0.62% | D |
| 4BR | $3,340 | $659,868 | 0.51% | F |
| 5BR | $3,874 | $904,571 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 55416, located in Saint Louis Park, MN, stands out within Hennepin County due to its unique demographic and economic characteristics. With a population of 35,015, it has a rental rate of 50.1%, indicating a balanced mix of homeowners and renters. The median household income in the area is $105,958, reflecting a relatively affluent community. However, the median home value of $408,872 suggests that homeownership is not necessarily within reach for all residents, particularly those who rely on rental housing.
In terms of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 55416 for fiscal year 2024 is set at $2,000, which is notably higher than the market rent as measured by ZORI (Zillow Observed Rent Index), currently at $1,884. This discrepancy indicates that landlords who accept Section 8 vouchers can expect to receive a higher rent compared to the typical market rate, making it an attractive option for many property owners. The higher FMR also suggests that the local government aims to ensure affordable housing options are available within the ZIP code, considering the higher cost of living.
Given the data signature of ZIP 55416, the area appears to be stable rather than transitional. The high median income and the significant portion of residents who rent suggest a steady demand for rental properties, including those that accept Section 8 vouchers. Landlords and small-portfolio investors should find the rental market predictable, with the potential for consistent returns if they choose to participate in the Section 8 program. Specifically, the difference between the FMR and ZORI means that landlords could see an additional $116 per month on average for a Section 8 tenant, compared to market rates. This makes the ZIP code an appealing investment opportunity for those looking to serve a diverse range of tenants while maintaining profitability.
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.