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 | $940 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $297,093 | 0.6% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 56375, located in St. Cloud, MN MSA, reveals a clear disparity between the HUD Fair Market Rent (FMR) and the actual market rents. The HUD FMR for ZIP 56375 is set at $920 for FY 2024, while the Census American Community Survey (ACS) reports an average market rent of $1,292. This indicates that voucher tenants would generally cashflow at FMR levels, but only with premium units or those significantly below the market average.
To further understand the investment potential, consider the median home value in ZIP 56375, which stands at $302,722. Using this figure, we can derive the rent-to-price ratio. For a median-priced home, the monthly rent would need to be approximately $2,522.52 to match the median home value ($302,722 / 120 months), indicating that typical market rents are well below this level. The rent-to-price ratio thus favors rental investments over homeownership, suggesting that rental properties are relatively undervalued compared to their purchase price.
In terms of rent versus buy dynamics, the data shows a median Days on Market (DOM) of N/A days and a price-cut share of N/A%. These figures suggest that the market is stable, with neither excessive inventory nor significant price reductions. However, the lower-than-market FMR suggests that landlords will need to focus on efficiency and cost management to ensure profitability with voucher tenants.
The strongest angle for investors in ZIP 56375 is stability. With a stable housing market and a clear demand for affordable rental units, investors can rely on consistent cash flow from Section 8 vouchers, even if it requires slightly below-market pricing to achieve positive cash flow. This stability is particularly valuable given the broader economic uncertainties and the predictability offered by government-backed rental assistance programs.
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.