Section 8 Fair Market Rent (FMR) for ZIP 56377 - 2027

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

Investment Score for ZIP 56377

Monthly Rent (2BR)

$1,410

Median Price (2BR)

$264,389

1% Rule

0.53%

Annual Yield

6.4%

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	$1,010
1 Bedroom	$1,100
2 Bedrooms	$1,410
3 Bedrooms	$1,890
4 Bedrooms	$2,240
5 Bedrooms	$2,598
6 Bedrooms	$2,910
7 Bedrooms	$3,143
8 Bedrooms	$3,300

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	$1,410	$264,389	0.53%	F
3BR	$1,890	$298,724	0.63%	D
4BR	$2,240	$356,746	0.63%	D
5BR	$2,598	$499,826	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

21,063

Median Household Income

$87,172

Housing Units

8,236

Renter Percentage

34.6%

Occupancy Rate

98.6%

Renter Occupied

2,812

The real estate market in Sartell, MN (ZIP 56377) is currently characterized by a median home value of $339,309, indicating a stable housing price environment. With only 0.2% of listings being reduced, it suggests that sellers are maintaining their asking prices, reflecting strong seller confidence and limited downward pressure on home values. The median days on market (DOM) stands at 25 days, which is relatively low, pointing to brisk sales activity and efficient market clearance. These factors collectively imply that landlords and small-portfolio investors can expect to maintain or potentially increase rental rates due to the robust housing market.

The Federal Market Rent (FMR) for ZIP 56377 in fiscal year 2024 is projected to be $1340, while the current market rent (ZORI) is $1,425. This indicates that there is a slight premium in the market above the federally supported rent levels. For long-term investors, the setup suggests that there is a realistic appreciation thesis tied to the local economic conditions and employment growth in the area. The consistent demand for rentals, coupled with the low reduction rate and short DOM, supports the notion that property values will likely remain steady or appreciate slightly over the next 12-24 months.

Landlords and small-portfolio investors should focus on maintaining properties in good condition to command the higher end of the rental spectrum. Additionally, keeping an eye on local job markets and population trends will help in understanding potential shifts in demand. The current dynamics between FMR and ZORI suggest that there is room for modest increases in rental rates without significantly deterring tenants, given the strong underlying housing market fundamentals.

A summary of the key points:

Pricing Power: Strong seller confidence and limited price reductions indicate that landlords can maintain or slightly increase rental rates.
Market Efficiency: A median DOM of 25 days shows that homes are selling quickly, supporting a healthy market turnover.
Rental Premium: The difference between FMR ($1340) and ZORI ($1425) suggests that market rents are slightly above federal support levels, allowing for modest rent increases.
Appreciation Thesis: Steady employment and population growth support the expectation of property value appreciation, though the pace is likely to be gradual.

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.