Section 8 Fair Market Rent (FMR) for ZIP 55427 - 2027

Location: Minneapolis-St. Paul-Bloomington, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area

Investment Score for ZIP 55427

F
Monthly Rent (2BR)
$1,780
Median Price (2BR)
$302,490
1% Rule
0.59%
Annual Yield
7.06%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,300
1 Bedroom$1,460
2 Bedrooms$1,780
3 Bedrooms$2,320
4 Bedrooms$2,610
5 Bedrooms$3,028
6 Bedrooms$3,391
7 Bedrooms$3,662
8 Bedrooms$3,845

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,460 $116,544 1.25% A
2BR $1,780 $302,490 0.59% F
3BR $2,320 $366,854 0.63% D
4BR $2,610 $427,024 0.61% D
5BR $3,028 $495,092 0.61% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
24,764
Median Household Income
$92,821
Housing Units
10,774
Renter Percentage
33.0%
Occupancy Rate
99.0%
Renter Occupied
3,519

ZIP code 55427, located in Crystal, MN, falls within the larger Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area. The Federal Market Rent (FMR) for ZIP 55427 is set at $1640 for fiscal year 2024, which is slightly above the average market rent of $1,570. This indicates that Crystal leans towards being a mid-tier neighborhood within the metro area, offering rents that are modestly higher than the market average but not excessively so.

The median home value in Crystal is $367,324, which is a critical figure for landlords and small-portfolio investors. This value suggests that Crystal is neither a value pocket nor a premium sub-market compared to other ZIP codes within the Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area. It represents a middle ground where property values are reasonable but not undervalued.

A notable aspect of ZIP 55427 is its 33.0% renter share, which is higher than the typical metro area. This high proportion of renters can be advantageous for landlords, as it implies a strong demand for rental properties. However, the home value in Crystal does not significantly diverge from the metro average, suggesting that while there is a robust rental market, it does not necessarily indicate an undervalued property market.

In conclusion, Crystal stands as a mid-tier neighborhood within its metro area, characterized by slightly above-average rents and a median home value that aligns closely with the broader market. Its elevated renter share makes it particularly appealing for those interested in Section 8 investments, as it suggests a vibrant rental market without the accompanying premium on home values.

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.