Section 8 Fair Market Rent (FMR) for ZIP 55417 - 2027
Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,250 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,250 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$126,261
Housing Authorities Serving ZIP 55417
- PHA in and for the City of Minneapolis (Minneapolis, MN) - 6,772 Section 8 vouchers
- HRA IN AND FOR THE CITY OF BLOOMINGTON (Bloomington, MN) - 565 Section 8 vouchers
- HOUSING AUTHORITY OF ST LOUIS PARK, MINNESOTA (Saint Louis Park, MN) - 406 Section 8 vouchers
- Plymouth Housing & Redevelopment Authority (Plymouth, MN) - 250 Section 8 vouchers
- RICHFIELD HRA (Richfield, MN) - 236 Section 8 vouchers
- HRA OF HOPKINS, MINNESOTA (Hopkins, MN)
- HRA OF THE CITY OF MOUND, MINNESOTA (Mound, MN)
To decide if you should buy in ZIP code 55417 (Minneapolis, MN) for Section 8, follow these steps:
- If FMR ($1540) clears debt service on a $378,243 property:
- Yes: Proceed to the next question. The Fair Market Rent (FMR) of $1540 must be sufficient to cover the mortgage payments, taxes, insurance, and other costs associated with owning a property valued at $378,243.
- No: Do not invest in this area for Section 8. The FMR is insufficient to support the financial burden of such a property.
- If market rent ($1,970 ZORI) is above, at, or below FMR:
- Above FMR: Market rent at $1,970 exceeds the FMR, indicating that properties could potentially be rented out at higher rates outside of Section 8. However, this also means Section 8 tenants might struggle to find affordable housing. Consider the balance between market rents and the availability of Section 8 vouchers.
- At FMR: Market rent aligns with FMR, making it feasible to attract both market-rate and Section 8 tenants. This scenario supports investment in Section 8 properties.
- Below FMR: Market rent is lower than FMR, which can be advantageous for landlords participating in the Section 8 program as they receive the higher FMR rate. This makes ZIP 55417 attractive for Section 8 investments.
- If 16.2% renters + 18-day DOM indicate enough demand:
- Yes: There is sufficient rental demand in the area. With 16.2% of residents being renters and an average Days on Market (DOM) of 18 days, the market shows strong interest in rental properties. This supports the viability of Section 8 investments.
- No: The demand is too low. If there are fewer renters or longer DOM periods, it suggests a weaker rental market. In this case, consider other areas with higher demand.
- It depends: Evaluate the competition and vacancy rates. Even with 16.2% renters and an 18-day DOM, if there are many vacant units or high competition, it might still be challenging to maintain occupancy rates. Investigate further into the local rental market conditions.
In summary, if the FMR of $1540 covers the debt service on a $378,243 property, and market rent is at or below FMR, with 16.2% of residents being renters and an 18-day DOM indicating adequate demand, then ZIP 55417 is a suitable location for Section 8 investments. Otherwise, reassess based on the specific conditions outlined above.
Data Sources: FMR data from HUD (2027). 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.