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 | $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 |
|---|---|---|---|---|
| 2BR | $1,090 | $324,296 | 0.34% | F |
| 3BR | $1,450 | $403,000 | 0.36% | F |
| 4BR | $1,690 | $495,850 | 0.34% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 56368, located in Richmond, Minnesota, within Stearns County, can be analyzed using the latest SAFMR (Small Area Fair Market Rent) figures. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $960. This means that landlords who participate in the Section 8 program will receive a maximum rental assistance payment of $960 per month for a two-bedroom unit.
Comparatively, the local market rent for a similar two-bedroom apartment is slightly lower at $934, according to the Census ACS data. However, the SAFMR is designed to reflect the median rent for a modest apartment in the area, ensuring that it covers a broad range of rental units without being too high or low.
When a landlord participates in the Section 8 program, they receive a combination of payments from the Housing Choice Voucher (HCV) program and the tenant's contribution. The tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,600 (a common benchmark), the tenant would contribute approximately $480 towards the monthly rent. The remaining balance is covered by the HCV program, which in this case would be $960 minus the tenant's contribution of $480, totaling $480.
In addition to the base rent, the HCV program also provides utility allowances. These allowances vary but typically cover electricity, gas, water, and garbage collection. For ZIP 56368, the utility allowance for a two-bedroom apartment might be around $150 per month, depending on the specifics of the voucher and the local cost of utilities. This brings the total reimbursement from the HCV program to $630 ($480 base rent + $150 utilities).
Therefore, when a landlord rents a two-bedroom apartment for $960 to a Section 8 participant, they will receive $630 from the HCV program and $480 from the tenant, summing up to the full SAFMR amount of $960. In ZIP 56368, where the market rent is $934, landlords participating in the Section 8 program will see a slight surplus of $26 per month over the market rate.
This surplus is beneficial for landlords, as it allows them to potentially earn above the local market rate while still providing affordable housing options for tenants. It's important to note that the actual reimbursement amounts can vary based on the specific utility costs and the tenant's income, but the overall economic impact remains positive for landlords in this ZIP code.
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.