Location: St. Cloud, MN | Metro: St. Cloud, MN MSA
| 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 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 56369, located in Stearns County, part of the St. Cloud, MN MSA, reveals several key insights. The HUD Fair Market Rent (FMR) for FY 2024 is set at $950, while the Census American Community Survey (ACS) reports an average market rent of $846. This means that voucher tenants can provide positive cash flow at the HUD FMR rate, given the current market conditions.
To further analyze the potential returns, we consider the median home value in the area, which stands at $256,296. Using this figure, we can derive the rent-to-price ratio, which is approximately 3.67%. This indicates that rental income represents a significant portion of the property's value, making it attractive for investors seeking steady cash flow.
The data does not provide specific figures for the median days on market (DOM) or the percentage of properties that require price cuts. However, these metrics would be crucial in understanding the rent-versus-buy dynamics in the area. If DOM is low and price cuts are infrequent, it suggests strong demand for rental properties over home purchases, further supporting the attractiveness of the rental market.
The strongest angle for investors in ZIP 56369 is cash flow. With the HUD FMR exceeding the market rent, landlords can expect to generate positive cash flow from Section 8 tenants, making this a reliable investment opportunity.
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.