Location: St. Cloud, MN | Metro: Minneapolis-St. Paul-Bloomington, MN-WI 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 | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $217,344 | 0.71% | D |
| 3BR | $2,040 | $280,154 | 0.73% | D |
| 4BR | $2,280 | $336,394 | 0.68% | D |
| 5BR | $2,645 | $389,891 | 0.68% | D |
U.S. Census Bureau data (2024)
The ZIP code 56304, located in Saint Cloud, MN, falls within the broader St. Cloud, MN Metropolitan Statistical Area (MSA). Comparing the key metrics of ZIP 56304 to the typical ZIP codes within the St. Cloud, MN MSA reveals some interesting insights.
The Fair Market Rent (FMR) for ZIP 56304 in fiscal year 2024 is set at $1,270. This figure is slightly below the market rent of $1,312, indicating that the rental prices in 56304 are modestly lower than what the market dictates. This suggests that 56304 could be considered a value pocket for landlords looking to offer affordable housing options without significantly undercutting the market rate.
The median home value in ZIP 56304 stands at $265,940. This is a reasonable price point compared to other ZIP codes in the MSA, which typically have higher home values. The relatively lower home value in 56304 can be seen as another characteristic of a value pocket, where property acquisition costs are more manageable for small-portfolio investors.
The renter share in ZIP 56304 is quite substantial at 58.6%. This high proportion of renters indicates a strong demand for rental properties in the area. High renter share combined with below-average home values often points to a potential sweet spot for Section 8 investments. Landlords in this ZIP code might find a robust tenant pool due to the significant number of renters, many of whom could qualify for government assistance programs.
To summarize, ZIP 56304 appears to be a value pocket within the St. Cloud, MN MSA. It offers rental rates and home values that are lower than average but still competitive. The high renter share suggests a strong demand for rental units, making it an attractive location for landlords interested in Section 8 housing. However, to fully understand its position within the MSA, further analysis of comparable ZIP codes would be necessary.
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.