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 | $930 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,470 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,470 | $334,467 | 0.44% | F |
| 4BR | $1,690 | $411,138 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 55389 reveals a market that is somewhat balanced between yield and stability, but leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. This conclusion is driven by several key figures.
Firstly, the Federal Market Rent (FMR) for ZIP 55389 in fiscal year 2024 is set at $910. This figure is notably higher than the market rent of $767, indicating a potential for higher rental yields when properties are rented through the Section 8 program. However, the FMR does not exceed the market rent significantly enough to categorize this area as a high-yield market.
The median home value of $315,952 suggests that the area is not particularly cheap, which limits the potential for flipping properties at a profit. The high home values also imply a relatively stable housing market where property values are less likely to fluctuate dramatically.
In terms of stability, the data points to a moderate level of residential security. With 15.2% of residents being renters, there is a smaller pool of tenants compared to areas with a higher percentage of renters, which can be advantageous for landlords seeking long-term, stable tenancies. The lack of day DOM (days on market) data indicates that while we cannot quantify the speed at which homes sell, it is not a significant concern in this classification.
The average income of $96,786 provides insight into the financial health of the residents. This income level supports a reasonable likelihood of timely rent payments and overall economic stability within the area.
Combining these factors, ZIP 55389 presents itself as a steady-cashflow zone. The higher FMR compared to market rent ensures a decent yield, while the average income and the percentage of renters indicate a stable environment for maintaining consistent cash flow. Landlords and small-portfolio investors should find this area appealing for its balance of yield and stability.
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.