Section 8 Fair Market Rent (FMR) for ZIP 56374 - 2027

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

Investment Score for ZIP 56374

F
Monthly Rent (2BR)
$1,340
Median Price (2BR)
$295,720
1% Rule
0.45%
Annual Yield
5.44%

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$960
1 Bedroom$1,040
2 Bedrooms$1,340
3 Bedrooms$1,800
4 Bedrooms$2,130
5 Bedrooms$2,471
6 Bedrooms$2,768
7 Bedrooms$2,989
8 Bedrooms$3,138

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,340 $295,720 0.45% F
3BR $1,800 $317,390 0.57% F
4BR $2,130 $361,139 0.59% F
5BR $2,471 $428,473 0.58% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
10,029
Median Household Income
$80,156
Housing Units
3,776
Renter Percentage
26.9%
Occupancy Rate
94.1%
Renter Occupied
956

The rent math in ZIP code 56374, located in Saint Joseph, MN, within the St. Cloud, MN MSA metro area, is favorable for landlords. The Fair Market Rent (FMR) for FY 2024 is set at $1140, which closely aligns with the market rent of $1,125 as reported by the Census Bureau's American Community Survey (ACS). This indicates that rental properties priced at the market rate will likely attract tenants without needing significant adjustments.

Acquisition of rental properties in this ZIP code is reasonably affordable. With a median home value of $336,055, potential investors can acquire homes at a price point that is not excessively high. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.1%) suggests that the housing market is stable but may not be particularly active. This could imply that while acquiring a property is feasible, finding deals might require patience and persistence.

Tenant demand in ZIP 56374 is strong enough to support rental investments. The area has a total population of 10,029, with 26.9% of residents being renters. This means there are approximately 2,690 individuals or families who are actively seeking rental housing, providing a solid base of potential tenants for landlords.

In summary, the rent math in ZIP 56374 works well, making it a viable option for rental income. While the median home value indicates that property acquisition is affordable, the limited data on market activity suggests that finding the right deal may take time. Tenant demand is present, with nearly a quarter of the population renting, which supports the sustainability of rental investments in this area. Landlords and small-portfolio investors should find the environment conducive to generating steady rental income, provided they are willing to engage in thorough property research and selection.

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.