Location: St. Cloud, MN | Metro: St. Cloud, MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 56321 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP is set at $1140 per month for fiscal year 2024. Since the local market rent figure is not available, we will base our analysis on the SAFMR.
A landlord participating in the Section 8 program receives rental payments from the government on behalf of eligible tenants. This payment is calculated based on the SAFMR minus the tenant's portion, which is typically 30% of their income. For simplicity, let's assume an average tenant income that would result in a contribution of $300 towards the rent.
In addition to the tenant's portion, there are utility allowances. These vary but generally cover electricity, water, and sewer costs. In ZIP 56321, a reasonable utility allowance might be around $150 per month. This amount can change based on specific circumstances and is determined by the local housing authority.
To illustrate, if a tenant contributes $300 and the utility allowance is $150, then the government voucher would pay the remaining balance of the SAFMR. This calculation would be:
$1140 (SAFMR) - $300 (tenant contribution) - $150 (utility allowance) = $690 paid by the government voucher.
This means the landlord would receive a total of $690 from the voucher plus $300 from the tenant, totaling $990 per month. If the landlord charges the full SAFMR of $1140, they would have a reimbursement gap of $150 per month. Conversely, if the landlord charges less than the SAFMR, say $1000, they would still receive $990, resulting in a surplus of $10 over the SAFMR, but a net loss of $50 compared to the full SAFMR.
The typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 56321, assuming the landlord adheres to the SAFMR, is a gap of $150 per month. This reflects the difference between the full SAFMR and the combined tenant contribution and utility allowance.
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.