Section 8 Fair Market Rent (FMR) for ZIP 55444 - 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	$1,270
1 Bedroom	$1,430
2 Bedrooms	$1,740
3 Bedrooms	$2,270
4 Bedrooms	$2,550
5 Bedrooms	$2,958
6 Bedrooms	$3,313
7 Bedrooms	$3,578
8 Bedrooms	$3,757

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

16,559

Median Household Income

$117,198

Housing Units

5,313

Renter Percentage

9.7%

Occupancy Rate

96.6%

Renter Occupied

500

Housing Authorities Serving ZIP 55444

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)

In ZIP code 55444, which is located in Brooklyn Park, Minnesota, in Hennepin County, the economics of Section 8 housing vouchers can be quite straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1500. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.

The local market rent for a two-bedroom unit in ZIP 55444, according to the Census ACS data, is $1498. Landlords might initially think that having a Section 8 tenant would mean receiving less than market rate, but this isn't always the case. Let's break down the components of what a voucher actually pays:

Tenant Portion: The tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1800 per month, the tenant's portion would be $540.
Voucher Reimbursement: The Housing Authority will pay the difference between the tenant's portion and the SAFMR, up to the limit of $1500. Therefore, if the tenant pays $540, the Housing Authority would cover the remaining $960, bringing the total to $1500.
Utility Allowances: Utility allowances are additional payments made by the Housing Authority to help cover the cost of utilities. These allowances vary but typically add a few hundred dollars to the monthly payment.

Once all these factors are considered, landlords can receive a steady and predictable income of $1500 per month for a two-bedroom apartment, which is slightly above the local market rent of $1498. This means there is a small surplus of $2 per month for landlords in ZIP 55444 when they have a Section 8 tenant. However, this surplus does not account for the utility allowances, which can further increase the total reimbursement received by the landlord.

In conclusion, the economics of Section 8 in ZIP 55444 provide landlords with a reliable source of income that matches or slightly exceeds the local market rates, making it a viable option for property owners in this area.

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.