FY2027 Small Area FMR · Cottage Grove, MN

ZIP 55016 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 55016 (Cottage Grove, MN) is $2,080 a month, down 1.0% from FY2026. That is 20% above the Minneapolis-St. Paul-Bloomington, MN-WI area-wide FMR of $1,734.

2-bedroom SAFMR$2,080per month ▼ 1.0%

Area-wide 2 BR FMR$1,734Minneapolis-St. Paul-Bloomin

Rank in the area33rdof 246 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,872

2 BR Small Area FMR$2,080

110% of SAFMR$2,288

Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.

Studio$1,520▼ 0.7%

1 BR$1,710▼ 1.2%

2 BR$2,080▼ 1.0%

3 BR$2,720▼ 2.2%

4 BR$3,040▼ 2.3%

FY2027 FY2026

Where 55016 sits in the Minneapolis-St. Paul-Bloomington, MN-WI area

Of the 246 ZIP codes HUD lists for the area, 55016 has the 33rd highest two-bedroom Small Area FMR. Minneapolis-St. Paul-Bloomington, MN-WI is not on HUD's list of mandatory Small Area FMR areas, so voucher payment standards here are normally based on the area-wide FMR of $1,734 for two bedrooms; an agency that opts in to Small Area FMRs would use $2,080 for this ZIP code instead.

All unit sizes

Monthly gross rent including utilities
Unit	FY2027 SAFMR	Payment standard range	Area-wide FMR	FY2026 SAFMR
Studio	$1,520	$1,368 – $1,672	$1,265	$1,530
1 bedroom	$1,710	$1,539 – $1,881	$1,427	$1,730
2 bedrooms	$2,080	$1,872 – $2,288	$1,734	$2,100
3 bedrooms	$2,720	$2,448 – $2,992	$2,264	$2,780
4 bedrooms	$3,040	$2,736 – $3,344	$2,538	$3,110

A household renting a two-bedroom home at the Small Area FMR of $2,080 needs about $83,200 a year to keep housing costs at 30% of income. The area median family income is $131,500 and the 80% low-income limit for four people is $105,200. ZIP code 55016 lies mainly in Washington County. See the Minneapolis-St. Paul-Bloomington, MN-WI metro page for the full income limits table and the household check.

Nearby ZIP codes

ZIP	Place	Distance	2 BR SAFMR
55071	Saint Paul Park	3.1 mi	$2,450
55076	Inver Grove Heights	4.9 mi	$1,650
55129	Saint Paul	5.0 mi	$2,310
55055	Newport	5.0 mi	$1,540
55077	Inver Grove Heights	6.4 mi	$1,800
55125	Saint Paul	6.9 mi	$2,220

Questions

What is the Fair Market Rent for ZIP code 55016?

HUD's FY2027 Small Area Fair Market Rents for 55016 are $1,520 (studio), $1,710 (1 BR), $2,080 (2 BR), $2,720 (3 BR) and $3,040 (4 BR) a month.

What is the Section 8 payment standard in 55016?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 55016 that range is $1,872 to $2,288 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 55016?

The FY2026 income limits of the Minneapolis-St. Paul-Bloomington, MN-WI area apply: median family income $131,500, low-income (80%) limit $105,200 for a family of four.