Location: Todd 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $354,489 | 0.41% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 56331, located in Freeport, MN, within Stearns County, operate under specific parameters that are crucial for landlords and small-portfolio investors to understand. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1170. This SAFMR figure is specifically tailored for this ZIP code, reflecting the localized rental market conditions.
In contrast, the local market rent for a similar two-bedroom unit, based on Census ACS data, is $813. This indicates that the SAFMR is significantly higher than the actual market rent, which can be advantageous for landlords participating in the Section 8 program.
A Section 8 voucher payment consists of two parts: the tenant's contribution and the government subsidy. Typically, the tenant contributes 30% of their adjusted income toward rent. In ZIP 56331, if we assume an average adjusted income of $1600 per month, the tenant would contribute approximately $480 towards rent. The remaining amount is covered by the government, up to the SAFMR limit.
The government will pay the difference between the tenant's contribution and the SAFMR, but not exceeding the SAFMR. Thus, for a two-bedroom apartment in ZIP 56331, the government would pay $1170 - $480 = $690. However, the total reimbursement includes utility allowances, which can vary. Assuming a utility allowance of $200, the total reimbursement would be $690 + $200 = $890.
This means that even though the local market rent is $813, landlords who participate in the Section 8 program in ZIP 56331 could receive a reimbursement of $890 for a two-bedroom unit. This represents a surplus of $77 over the local market rent, making it a financially viable option for landlords.
To summarize, landlords in ZIP 56331 should expect a reimbursement of $890 for a two-bedroom apartment when a tenant uses a Section 8 voucher, assuming the tenant's contribution and utility allowance as outlined. This exceeds the local market rent by $77, providing a positive economic incentive to participate in the program.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.