Location: Morrison 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 | $990 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $272,691 | 0.47% | F |
| 3BR | $1,710 | $358,337 | 0.48% | F |
| 4BR | $1,990 | $406,547 | 0.49% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56340, which includes Holdingford, MN, and the Morrison County, MN metro area, reveals several key points for landlords and small-portfolio investors.
The first question is whether the rent math works. The Fair Market Rent (FMR) for ZIP 56340 in fiscal year 2024 is set at $990. However, the market rent is currently not available, making it difficult to compare FMR against actual market conditions. This uncertainty suggests that landlords should closely monitor local rental trends to ensure their pricing remains competitive.
Secondly, regarding the affordability of property acquisition, the median home value in ZIP 56340 is $357,390. With no available data on the average days on market (DOM) or the percentage of homes needing price cuts to sell, it's challenging to gauge how quickly properties might turn over or if significant price reductions are common. Despite this lack of detail, the median home value indicates a moderate investment cost, suitable for those looking to enter a stable but not highly speculative market.
Finally, there is the issue of tenant demand. The total population of ZIP 56340 is 2,309, with 6.2% of residents being renters. This relatively low renter share suggests limited demand for rental properties, potentially leading to higher vacancy rates and longer periods between tenancies. Landlords should consider these factors when assessing the potential profitability of their investments.
Verdict: While the rent math is unclear due to missing market rent data, the median home value presents a reasonable entry point for property acquisition. However, the low renter share poses a significant challenge to sustaining a high occupancy rate, indicating that this ZIP code may not be ideal for landlords seeking high-demand rental opportunities. Investors should proceed with caution, focusing on properties that can offer unique value propositions to attract tenants in a less-than-ideal rental market.
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.