Location: Rochester, MN | Metro: Rochester, MN 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 | $1,450 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,410 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,740 | $270,500 | 0.64% | D |
| 3BR | $2,410 | $394,017 | 0.61% | D |
| 4BR | $2,910 | $540,767 | 0.54% | F |
| 5BR | $3,376 | $776,786 | 0.43% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $1370 for ZIP 55902 in Rochester, MN, for fiscal year 2024, landlords can expect a reasonable subsidy level from the government for eligible tenants. The Zillow Observed Rent Index (ZORI) at $1,795 highlights the premium that market rents command over the subsidized rates. In terms of property values, the median home value stands at $468,222, indicating a stable and potentially lucrative market for real estate investments. With 27.6% of residents being renters, there is a significant portion of the population who might benefit from Section 8 housing vouchers, making rental properties attractive to both landlords and low-income families alike. The median income of $120,611 suggests that while many residents can afford market rents, there is still a substantial need for affordable housing options. A 18-day Days on Market (DOM) indicates that rental units are moving quickly, which is positive for cash flow and occupancy rates. The price-cut share of 0.2% reveals that very few listings require price reductions, suggesting strong demand and stability in rental pricing. For landlords and small-portfolio investors, these figures paint a picture of a robust rental market with opportunities for both traditional and Section 8 investments.
When considering the Section 8 program specifically, the alignment between the FMR and the market rent provides a clear benchmark for setting reasonable rents that are both competitive and sustainable. Given the high median home value and income levels, the program offers a pathway to make rental properties accessible to a wider range of tenants without sacrificing profitability. Additionally, the low DOM and price-cut share suggest that the overall market conditions are favorable, supporting the idea that Section 8 properties can perform well alongside market-rate rentals. This combination of factors makes ZIP 55902 an excellent location for those interested in participating in the Section 8 program, offering a blend of affordability and market strength that benefits all parties involved.
The verdict on Section 8 for ZIP 55902 is positive, with the program providing a viable option for landlords to fill vacancies and maintain steady cash flows in a competitive rental market.
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.