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 | $1,250 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,710 | $260,441 | 0.66% | D |
| 3BR | $2,230 | $323,358 | 0.69% | D |
| 4BR | $2,500 | $359,247 | 0.7% | D |
| 5BR | $2,900 | $378,822 | 0.77% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 55433, Coon Rapids, MN, in fiscal year 2024 is set at $1590. This figure represents the payment standard for Section 8 vouchers in your area, meaning it's the maximum amount that the government will pay towards a tenant's rent. However, this is not the rent you should charge; it's the benchmark for determining eligibility and reimbursement.
To put this into context, the Zillow Observed Rent Index (ZORI), which reflects actual rental prices in the area, stands at $1523. This suggests that the FMR slightly exceeds the average market rent, which can be beneficial for landlords participating in the Section 8 program as it may cover more of your costs.
The 32.0% renter share indicates that over a third of households in Coon Rapids are renters, signaling a steady demand for rental properties. If you're considering entering the Section 8 market, this high percentage of renters could mean a consistent pool of potential tenants.
When it comes to acquiring a property, the median home value in Coon Rapids is approximately $316,976. While this figure doesn't directly relate to rental properties, it gives you an idea of the overall housing market value in the area. Rental properties might be priced lower, but it's important to ensure they meet the quality standards required by the Section 8 program.
Before making a final decision on whether to accept a Section 8 tenant, verify that the property meets the Housing Quality Standards (HQS) set by the U.S. Department of Housing and Urban Development (HUD). These standards ensure the safety and habitability of the rental unit and must be met for the property to qualify for Section 8 tenancy.
In summary, with an FMR of $1590 and a ZORI of $1523, landlords can expect competitive reimbursement rates that align closely with market rents. The significant renter share of 32.0% points to a strong demand for rentals, and the median home value of $316,976 offers insight into the broader housing market. To proceed, ensure your property complies with HQS guidelines to avoid any complications.
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.