Location: St. Cloud, MN | Metro: St. Cloud, MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
U.S. Census Bureau data (2024)
The ZIP code 56356 is situated in a small, tight-knit community with a total population of 266 residents. Only 4.3% of these residents are renters, indicating a predominantly owner-occupied area. The median household income stands at $85,000, suggesting a middle-class neighborhood where most residents can afford their homes without significant financial strain. The median home value in this ZIP code is $204,245, reflecting a modest but stable housing market.
From an investment perspective, the Fair Market Rent (FMR) for ZIP 56356 in fiscal year 2024 is set at $1,150, which is slightly below the Census ACS reported market rent of $1,188. This indicates that while there is a small gap between government-subsidized rental rates and the actual market, it is minimal and likely manageable for landlords participating in the Section 8 program.
The low percentage of renters in the area suggests that landlords operating in ZIP 56356 would benefit from a hands-off approach, given the limited demand for rental properties. However, for those looking to engage in value-add strategies, the modest median home values provide an opportunity to purchase and renovate homes, potentially increasing their rental value above the FMR. This could be particularly effective if targeting a niche market within the community that might benefit from higher-quality, albeit still affordable, rental options.
In conclusion, ZIP 56356 offers a balanced environment for both hands-off and hands-on Section 8 operators. With a median income of $85,000 and median home values at $204,245, the area is financially stable. The slight difference between the FMR of $1,150 and the market rent of $1,188 means that landlords can expect to cover costs and make a reasonable profit, especially when considering renovation and improvement projects to enhance property value.
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.