Section 8 Fair Market Rent (FMR) for ZIP 55445 - 2027

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

Investment Score for ZIP 55445

Monthly Rent (2BR)

$2,500

Median Price (2BR)

$230,443

1% Rule

1.08%

Annual Yield

13.02%

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	$1,820
1 Bedroom	$2,060
2 Bedrooms	$2,500
3 Bedrooms	$3,260
4 Bedrooms	$3,660
5 Bedrooms	$4,246
6 Bedrooms	$4,756
7 Bedrooms	$5,136
8 Bedrooms	$5,393

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
2BR	$2,500	$230,443	1.08%	B
3BR	$3,260	$361,221	0.9%	C
4BR	$3,660	$414,046	0.88%	C
5BR	$4,246	$476,312	0.89%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

13,546

Median Household Income

$104,150

Housing Units

4,797

Renter Percentage

16.8%

Occupancy Rate

96.5%

Renter Occupied

777

The economics of Section 8 in ZIP code 55445, which is located in Brooklyn Park, Minnesota, within Hennepin County, can be dissected into several key components to understand its financial impact on landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $2400. This figure represents the maximum amount that the housing authority will pay toward the rent for a unit of this size.

However, it's important to note that the SAFMR is not the only factor in determining the total payment a landlord receives. The local market rent for a two-bedroom apartment, according to Census ACS data, is $1,842. This lower market rent reflects the average rent charged for similar units in the area, which is often below the SAFMR.

To walk through the actual payment process, consider the following breakdown:

A landlord can charge up to $2400 per month for a two-bedroom unit under Section 8.
Tenants are required to contribute 30% of their adjusted income toward rent. For example, if a tenant's adjusted income is $2000, they would contribute $600 towards rent ($2000 * 0.3).
The housing authority covers the difference between the tenant's contribution and the SAFMR. In this case, the authority would pay $1800 ($2400 - $600).
Utility allowances are also provided, but these do not increase the overall rent reimbursement. They are meant to cover the cost of utilities for the tenant.

In ZIP 55445, the typical scenario would result in a surplus for landlords. Given the SAFMR of $2400 and the local market rent of $1,842, a landlord could potentially receive an additional $558 above the local market rate, assuming the tenant's contribution is $600. This surplus is calculated as the difference between the SAFMR and the local market rent, minus the tenant's contribution.

Therefore, landlords in ZIP 55445 can expect a steady and reliable source of income that exceeds the local market rent for two-bedroom apartments. The reimbursement gap or surplus stands at approximately $558 per month, making Section 8 participation financially advantageous in this specific ZIP code.

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.