Location: Meeker County, MN | Metro: St. Cloud, MN MSA
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 | $790 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $297,434 | 0.37% | F |
| 3BR | $1,450 | $389,872 | 0.37% | F |
| 4BR | $1,690 | $432,162 | 0.39% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 55353 (Kimball, MN) might raise several concerns regarding the feasibility of investing in this area. Here are some key objections and the data to address them.
Objection 1: Will the Fair Market Rent (FMR) of $910 for ZIP 55353 cover the mortgage on a $358,823 home?
The FMR of $910 does not directly cover the mortgage on a home valued at $358,823. However, the cost of a mortgage depends on factors such as interest rates, loan terms, and down payments. According to recent data, if a landlord secures a mortgage with a reasonable down payment and an average interest rate, the FMR can indeed contribute significantly toward covering monthly mortgage payments. It's important to note that the FMR is a guideline for what tenants can afford, and it does not include utilities or other living expenses.
Objection 2: Is there enough renter demand at 13.0%?
The 13.0% renter occupancy rate might seem low, but it's essential to consider the local context. ZIP 55353 has a smaller population compared to urban centers, which naturally leads to lower renter demand. However, the presence of 244 apartments and rental properties listed on Trulia suggests that there is still a viable rental market. Additionally, the number of available rental properties indicates that there is space for new investments without oversaturating the market. While the demand is not as high as in densely populated areas, it remains sufficient for small-scale investments.
Objection 3: Will vouchers keep pace with $794 market rents?
The HUD voucher program aims to help low-income families afford housing on the private market. However, finding specific data for ZIP 55353 regarding the voucher program is challenging. Generally, the voucher amount can vary widely depending on the region and the individual tenant's circumstances. In many cases, the voucher covers a significant portion of the rent, making it possible for landlords to participate in the program while still maintaining profitability. It's advisable for landlords to consult with local housing authorities to understand the specifics of the voucher program in their area.
In summary, while the FMR and renter demand percentages present challenges, they do not necessarily preclude successful investment. Landlords should carefully consider the local market conditions and consult with financial advisors to ensure that their investment aligns with their financial goals and risk tolerance.
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.