Location: Pope 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 | $900 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,640 | $228,884 | 0.72% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 56316 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1050 for the fiscal year 2024. This figure represents the maximum amount that a landlord can charge for a two-bedroom unit under the Section 8 program, which is specifically tailored to this ZIP code.
Local market rents, according to the Census ACS, run significantly lower at $664 for a two-bedroom apartment. However, the Section 8 program does not follow these local market rates; instead, it adheres to the higher SAFMR to ensure that tenants have access to a broader range of housing options.
A landlord participating in the Section 8 program should understand how the reimbursement works. The total rent is split between the tenant and the government. Tenants typically pay about 30% of their adjusted income towards rent, plus any applicable utility allowances. For example, if a tenant's portion is $300 and the utility allowance is $150, the government would cover the remaining $600 to reach the $1050 maximum allowed rent.
This means that even though the local market rent is $664, landlords can expect to receive up to $1050 per month for a two-bedroom unit under the Section 8 program. The actual reimbursement will depend on the tenant's income and the specific utility allowances provided by the housing authority.
To illustrate, let's assume a tenant's income requires them to contribute $300 towards rent, and they are allocated an additional $150 for utilities. In this case, the landlord would be reimbursed $1050 minus these amounts, resulting in a reimbursement of $600 from the government. This $600 is above the local market rent of $664, indicating that landlords could see a surplus of $36 per unit each month, assuming the tenant's contribution and utility allowance remain consistent.
In summary, the economics of Section 8 in ZIP 56316 allow landlords to charge up to $1050 for a two-bedroom apartment, despite the local market rent being lower. Once the tenant's portion and utility allowances are accounted for, landlords can expect a reimbursement that may result in a surplus compared to the local market conditions.
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.