Location: Meeker 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 | $830 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $271,067 | 0.42% | F |
| 3BR | $1,550 | $319,406 | 0.49% | F |
| 4BR | $1,810 | $392,236 | 0.46% | F |
U.S. Census Bureau data (2024)
ZIP Code 56362, located in Paynesville, Meeker County, Minnesota, presents a unique opportunity for landlords and small-portfolio investors within a Section 8 portfolio strategy. This area is best suited as an appreciation play due to its low price-cut share and the number of days on market (DOM).
The Federal Market Rent (FMR) for ZIP 56362 in fiscal year 2024 is set at $1050 for a one-bedroom unit. In comparison, the current market rent stands at $829, indicating a spread of $221. This spread suggests that the area is undervalued relative to the government's rental assistance standards, which can be beneficial for long-term investment.
With a median home value of $326,511, the area is relatively affordable when considering the broader context of the U.S. national average. However, the key factor that makes ZIP 56362 an appreciation play is its 0.3% price-cut share, meaning only a small fraction of homes are being sold at a discount. Additionally, the lack of significant DOM indicates that homes are selling quickly, which is a positive sign for future price appreciation.
The median income in ZIP 56362 is $86,212, providing a stable economic foundation for the area. While the renter share is 16.7%, which could suggest diversification opportunities, the primary focus should remain on the potential for appreciation. The combination of low price cuts and quick sales points towards a growing and desirable market, where property values are likely to increase over time.
In conclusion, ZIP 56362 is best positioned as an appreciation play within a Section 8 portfolio strategy. Its favorable market conditions and the positive spread between FMR and market rent make it an attractive option for investors looking to capitalize on future value growth.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.