Location: Kandiyohi 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $196,934 | 0.55% | F |
| 3BR | $1,450 | $295,104 | 0.49% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56312 in Minnesota reveals a market that offers a moderate balance between yield and stability, making it neither a high-yield/low-stability flip-style market nor a purely steady-cashflow zone.
On the yield axis, the Fair Market Rent (FMR) for ZIP 56312 stands at $990 for fiscal year 2024, which is notably higher than the market rent of $865. This indicates a potential for higher rental yields when compared to typical market rates. However, the median home value of $332,694 suggests that property acquisition costs are substantial, tempering the overall yield potential.
Regarding stability, the ZIP code shows a renter population of 21.3%, which is relatively low and could indicate a less stable tenant pool. The lack of data on days on market (DOM) makes it challenging to assess how quickly properties can be rented out or flipped. However, the average household income of $70,000 provides some assurance regarding the financial capacity of potential tenants to pay rent consistently.
To summarize, ZIP 56312 offers a moderate rental yield due to the FMR being $990, exceeding the market rent of $865. Yet, the stability is somewhat compromised by the lower percentage of renters at 21.3%. Given these factors, it is best characterized as a market offering a reasonable yield but with caution advised due to its mixed stability indicators. Landlords should consider these specifics before investing in this area.
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.