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 | $1,530 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,070 |
| 5 Bedrooms | $3,561 |
| 6 Bedrooms | $3,988 |
| 7 Bedrooms | $4,307 |
| 8 Bedrooms | $4,522 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,100 | $307,307 | 0.68% | D |
| 3BR | $2,740 | $406,536 | 0.67% | D |
| 4BR | $3,070 | $525,668 | 0.58% | F |
| 5BR | $3,561 | $628,888 | 0.57% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 55449 in Blaine, MN, are significant. Tenant turnover is a primary concern, with the market rent at $2,372 being notably higher than the Fair Market Rent (FMR) of $2,210 for fiscal year 2024. This discrepancy suggests that tenants receiving vouchers might struggle to afford the higher market rates, leading to frequent moves and increased vacancy periods. The average days on market (DOM) for rental properties in this area is 40, which is relatively long, indicating a higher likelihood of vacancy exposure. Landlords should also be prepared for deferred maintenance issues, given the typical home value of $453,266 and the median income of $131,832. These figures suggest that residents may find it challenging to cover maintenance costs out of pocket, potentially resulting in a greater burden on landlords to keep properties in good condition.
Despite these challenges, the high renter share of 12.1% in ZIP 55449 offers a silver lining. High renter density often translates into a robust demand for rental housing, including those who rely on Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate some of the risks associated with tenant turnover and vacancy periods. However, landlords must carefully balance the benefits of a steady tenant pool with the financial constraints faced by voucher recipients and the potential for maintenance backlogs.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.