Location: Todd County, 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $251,060 | 0.43% | F |
| 3BR | $1,450 | $286,925 | 0.51% | F |
| 4BR | $1,690 | $361,479 | 0.47% | F |
| 5BR | $1,960 | $419,144 | 0.47% | F |
U.S. Census Bureau data (2024)
Sauk Centre, MN, located in ZIP code 56378, presents itself as an ideal cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for a unit priced at $1000 in Sauk Centre for fiscal year 2024 is set above the local market rate of $853, creating a positive spread that ensures consistent rental income. This spread means that landlords can rely on the guaranteed payments from the Section 8 program, which will cover the cost of renting and provide a slight buffer against potential market fluctuations.
The median home value in Sauk Centre stands at $320,870, which is relatively stable and does not indicate significant growth potential. However, the stability of the housing market is beneficial for maintaining steady occupancy rates, reducing vacancy risks, and ensuring predictable cash flows. The 0.2% price-cut share and N/A-day Days on Market (DOM) suggest that there is little need for aggressive pricing strategies to attract tenants, further supporting the idea of Sauk Centre as a reliable cash-flow anchor.
While the area has a renter share of 29.0%, indicating a decent portion of the population relies on rentals, the median income of $72,567 is sufficient to support the demand for affordable housing options. This makes Sauk Centre particularly suitable for landlords looking to stabilize their investment portfolios with properties that generate reliable cash flow rather than those seeking rapid appreciation.
In conclusion, Sauk Centre, MN, serves best as a cash-flow anchor in a Section 8 portfolio due to the favorable spread between FMR and market rates, stable median home values, and adequate tenant demand supported by the local income levels. This positioning allows landlords to focus on long-term financial security and consistent returns, making it a solid choice for those prioritizing reliability over growth in their investment strategy.
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.