Section 8 Fair Market Rent (FMR) for ZIP 56301 - 2027
Location: St. Cloud, MN | Metro: St. Cloud, MN MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $970 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$73,142
Housing Authorities Serving ZIP 56301
A landlord considering investing in ZIP code 56301 (Saint Cloud, MN) for Section 8 properties must evaluate several key factors to make an informed decision. Here's a structured approach:
- Does the Fair Market Rent (FMR) of $1270 cover the debt service on a property valued at $310,627?
- If the annual debt service is less than $15,240 ($1270 x 12 months), then Yes. The FMR would sufficiently cover the mortgage payments.
- If the annual debt service exceeds $15,240, then No. The FMR would not be sufficient to cover the mortgage payments, making the investment unfeasible under Section 8 guidelines.
- Is the market rent of $1,304 (ZORI) above, at, or below the FMR?
- If the ZORI is above $1270, then the market rent is higher than the FMR. This means that landlords could potentially charge more than the FMR, but only non-Section 8 tenants would pay the higher rate. For Section 8 tenants, the rent cannot exceed the FMR.
- If the ZORI is exactly $1270, then the market rent aligns perfectly with the FMR, indicating no additional profit can be made from non-Section 8 tenants beyond what is covered by the FMR.
- If the ZORI is below $1270, then the market rent is lower than the FMR, which suggests that landlords might struggle to find non-Section 8 tenants willing to pay the FMR, reducing the overall attractiveness of the area for investment.
- Are 49.1% renters and a 37-day Days on Market (DOM) indicative of enough demand?
- The 49.1% rental rate indicates a significant portion of the population rents their homes, suggesting strong potential demand for rental properties.
- A 37-day DOM is relatively low, implying that rental units are occupied quickly once they become available. This supports the idea that there is ample demand.
- Given these figures, the answer is Yes. There is sufficient demand to support rental investments, including those participating in Section 8 programs.
To summarize, if the debt service is covered by the FMR of $1270, the ZORI is at least equal to the FMR, and the high rental rate combined with quick occupancy times indicate strong demand, then investing in ZIP 56301 for Section 8 properties is advisable. However, if any of these conditions are not met, the investment becomes less attractive.
Data Sources: FMR data from HUD (2027). 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.