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 | $315,956 | 0.46% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 56360 in the Todd County, MN metro area reveals several key points for potential Section 8 landlords and small-portfolio investors.
The rent math does not work in favor of landlords. The Fair Market Rent (FMR) for Section 8 in the zip code for fiscal year 2024 is set at $1190. However, the market rent, according to Census ACS data, is significantly lower at $638. This disparity means that landlords participating in the Section 8 program will receive higher rents compared to the local market average, but they must also adhere to the strict regulations and maintenance standards required by the program.
Acquisition appears to be affordable based on the $273,695 median home value. With no data available for the days on market (DOM) and the percentage of homes requiring price cuts, it's difficult to assess the current housing market dynamics fully. However, the median home value suggests that properties in this area are relatively inexpensive compared to larger metropolitan areas, making it an attractive option for investors looking to enter the market with a smaller capital outlay.
Tenant demand is moderate. The total population of the zip code is 3,721, with a 20.3% renter share. This indicates that while there are fewer potential tenants overall, the proportion of renters is still substantial enough to support a rental business. Landlords can expect a steady stream of applicants, though competition among units may be less intense due to the smaller population size.
In summary, while the rent math is favorable for landlords compared to the local market, the regulatory environment of Section 8 must be considered. Acquisition costs are reasonable, but without DOM and price-cut data, the ease of property acquisition remains unclear. Tenant demand is present but limited by the small population size. For those willing to navigate the complexities of the Section 8 program, ZIP 56360 offers a balanced opportunity with manageable property values and sufficient tenant interest.
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.