Section 8 Fair Market Rent (FMR) for ZIP 56367 - 2027

Location: Morrison County, MN | Metro: St. Cloud, MN MSA

Investment Score for ZIP 56367

Monthly Rent (2BR)

$1,260

Median Price (2BR)

$288,351

1% Rule

0.44%

Annual Yield

5.24%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$900
1 Bedroom	$980
2 Bedrooms	$1,260
3 Bedrooms	$1,690
4 Bedrooms	$2,000
5 Bedrooms	$2,320
6 Bedrooms	$2,598
7 Bedrooms	$2,806
8 Bedrooms	$2,946

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,260	$288,351	0.44%	F
3BR	$1,690	$351,781	0.48%	F
4BR	$2,000	$382,111	0.52%	F
5BR	$2,320	$449,432	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,209

Median Household Income

$101,771

Housing Units

2,926

Renter Percentage

8.4%

Occupancy Rate

91.1%

Renter Occupied

225

The Rice, Minnesota area, represented by ZIP code 56367, is a modest-sized community situated in the heart of the state, known for its agricultural landscape and quiet residential neighborhoods. The real estate market here reflects a blend of affordability and stability, making it an attractive option for both landlords and small-portfolio investors looking for steady returns.

Fair Market Rent (FMR) for ZIP 56367 in fiscal year 2024: The FMR stands at $990, indicating the government's benchmark for rental costs in the area.
Market rent: According to the Census ACS, the average market rent is $1,115, suggesting that the local rental market slightly exceeds the FMR, providing a potential margin for landlords.
Median home value: The median home value in Rice is $344,544, reflecting a moderate cost of housing that can support rental investments without being prohibitively expensive.
Renter share: Renter share in the area is 8.4%, which is relatively low, implying that there is room for growth in the rental market as the population increases or changes.
Days on Market (DOM): Data for DOM is currently unavailable, but this figure would be crucial for understanding how quickly properties are rented out in the area.
Median income: With a median household income of $101,771, residents have a solid financial base, likely translating into a reliable tenant pool capable of meeting rental obligations.

Investors in Rice, Minnesota can expect a stable yet moderately growing rental market. The gap between the Fair Market Rent and the actual market rent suggests opportunities for landlords to achieve reasonable profit margins. The low renter share indicates potential for expansion in rental offerings, particularly as the community grows. However, the lack of Days on Market data makes it challenging to assess the speed at which rental properties are leased, which is a key factor in cash flow planning. The strong median income supports the likelihood of finding financially secure tenants, contributing to lower vacancy rates and higher rental stability. Overall, Rice presents a balanced investment environment with potential for steady returns and manageable risk.

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.