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 | $1,420 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,600 | $158,584 | 1.01% | B |
| 2BR | $1,940 | $283,238 | 0.68% | D |
| 3BR | $2,530 | $392,419 | 0.64% | D |
| 4BR | $2,840 | $479,743 | 0.59% | F |
| 5BR | $3,294 | $545,842 | 0.6% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 55437, which includes Bloomington, Minnesota, is set at $1810 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not necessarily the rent you will receive; it is the ceiling price for subsidized units.
In comparison, the Zillow Observed Rent Index (ZORI), which reflects the average market rent, stands at $1637. This indicates that the Section 8 payment standard is slightly above the typical market rate, offering landlords a modest premium for participating in the program.
Bloomington has a strong rental market, with 31.1% of residents being renters. This high percentage suggests a robust demand for rental properties, including those that accept Section 8 vouchers. Landlords can expect steady occupancy rates, making it a reliable investment option.
The median home value in the area is around $392,725, which gives an idea of the property acquisition costs. For a single-family home or apartment complex, this figure can be used as a baseline to estimate the total investment required to enter the Section 8 market in Bloomington.
Before proceeding, it is crucial to verify that your property meets all the necessary quality standards set by the Department of Housing and Urban Development (HUD). These standards ensure that the rental unit is safe, decent, and sanitary for tenants, and failing to meet these requirements can result in reduced payments or even termination from the program.
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.