Location: St. Cloud, 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 | $880 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $236,813 | 0.52% | F |
| 3BR | $1,650 | $287,153 | 0.57% | F |
| 4BR | $1,960 | $347,806 | 0.56% | F |
| 5BR | $2,274 | $391,433 | 0.58% | F |
U.S. Census Bureau data (2024)
In ZIP code 56352, which is located in Stearns County, Minnesota, the economics of Section 8 housing can be analyzed based on specific figures. The SAFMR (Section 8 Area Median Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1140. This figure represents the maximum amount that the federal government will pay towards a tenant's rent in this area under the Section 8 Housing Choice Voucher program. It's important to note that this rate is specifically tailored for this ZIP code, reflecting local rental market conditions.
The local market rent for a two-bedroom apartment, according to Census ACS data, is around $1100. This suggests that the SAFMR is slightly above the average market rent, which can be beneficial for landlords as it helps cover any potential shortfalls due to the voucher program.
A Section 8 voucher works by subsidizing the difference between what a tenant can afford and the actual cost of the rent. Typically, tenants contribute about 30% of their adjusted income toward rent. If a tenant's share is less than the SAFMR, the government makes up the difference. For example, if a tenant's contribution is $300, the government would pay the remaining $840 towards the SAFMR of $1140, assuming there are no utility allowances or other adjustments.
Utility allowances are additional payments made by the government to help cover the costs of utilities such as electricity, gas, and water. These allowances vary but are generally around $200-$300 per month. This means that the total reimbursement a landlord might receive could range from $1040 to $1140, depending on the tenant's contribution and the utility allowance.
To illustrate, let's assume a tenant contributes $300 and the utility allowance is $240. In this case, the landlord would receive a total of $1080 from the government and the tenant combined. This leaves a $60 surplus compared to the local market rent of $1100. However, if the tenant's contribution is higher, say $400, and the utility allowance remains at $240, the landlord would receive $1180, resulting in an $80 surplus.
Landlords should be aware that the exact reimbursement can fluctuate based on the individual tenant's income and the specific utility allowances granted. Therefore, while the SAFMR provides a benchmark, the final reimbursement will depend on these factors. In ZIP 56352, landlords can expect a small surplus when renting a two-bedroom apartment to a tenant using a Section 8 voucher, given the SAFMR is above the local market rent.
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.