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 | $1,370 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,450 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,550 | $235,979 | 0.66% | D |
| 2BR | $1,880 | $342,772 | 0.55% | F |
| 3BR | $2,450 | $471,057 | 0.52% | F |
| 4BR | $2,750 | $654,791 | 0.42% | F |
| 5BR | $3,190 | $889,055 | 0.36% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 55419 in Minneapolis, Minnesota, for fiscal year 2024 is set at $1700. This figure represents the payment standard for Section 8 housing assistance in the area, meaning it's the maximum amount the government will pay on behalf of eligible tenants. It's important to note that this is not your rent; it's the ceiling for government subsidy payments.
To put this into perspective, the Zillow Observed Rent Index (ZORI) for the same area is $1,867. This indicates that the market rent is slightly higher than the FMR, suggesting that landlords can potentially charge a little above the FMR to cover any shortfall. However, the difference between the FMR and ZORI should be carefully considered to ensure profitability while remaining competitive.
The 18.3% renter share in ZIP 55419 shows that nearly one in five residents are renters, indicating a reasonable demand for rental properties. This demand, coupled with the average home value of $490,662, suggests that acquiring a property for a Section 8 rental could be a significant investment. Landlords must weigh the potential income from Section 8 against the overall cost of the property.
A critical factor to verify before proceeding with a Section 8 rental is the property's eligibility. Ensure that the property meets all local housing quality standards and that it's properly registered with the relevant housing authority. This verification step is essential to avoid any legal issues and to guarantee consistent rental assistance payments.
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.