Section 8 Fair Market Rent (FMR) for ZIP 56385 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 56385

• HRA of ST. CLOUD, MINNESOTA (Saint Cloud, MN) - 1,022 Section 8 vouchers
• STEARNS COUNTY HRA (Cold Spring, MN) - 291 Section 8 vouchers
• DOUGLAS COUNTY HRA (Alexandria, MN) - 276 Section 8 vouchers
• HRA of ALEXANDRIA, MINNESOTA (Alexandria, MN)
• HRA of SAUK CENTRE, MINNESOTA (Sauk Centre, MN)
• HRA of GLENWOOD, MINNESOTA (Glenwood, MN)
• HRA OF CITY OF MELROSE, MINNESOTA (Melrose, MN)

The ZIP code 56385, located in a suburban setting, offers a stable environment for real estate investment, particularly for those interested in Section 8 properties. The area benefits from a mix of residential and commercial developments, providing residents with necessary amenities while maintaining a quiet living atmosphere.

• The Fair Market Rent (FMR) for ZIP 56385 in fiscal year 2024 is set at $1,140. This figure represents the maximum rental amount that can be charged for a Section 8 voucher, ensuring a consistent income stream for landlords.
• The average market rent in the area, according to the Census Bureau's American Community Survey, is $967. This suggests that Section 8 rents are higher than the general market rate, offering a competitive advantage to landlords participating in the program.
• The median home value in ZIP 56385 stands at $323,525. This indicates a moderate housing market where property values are neither excessively high nor low, making it a balanced area for investment.
• Renters make up 11.6% of the population in this ZIP code. This relatively low percentage implies that there is room for growth in the rental market, potentially increasing demand for Section 8 units.
• The median income in the area is $73,500. This figure provides insight into the economic profile of the residents, suggesting that a portion of the population may rely on government assistance programs like Section 8 for housing.
• Unfortunately, the Days on Market (DOM) data is not available, which would have indicated how quickly properties are typically sold or rented in this area. However, the other metrics still provide a comprehensive view of the local real estate landscape.

Investors looking to enter the Section 8 market in ZIP 56385 can expect a favorable scenario where the FMR exceeds the typical market rent, ensuring higher-than-average returns. With a median home value of $323,525 and a median income of $73,500, the area presents a middle-ground opportunity, balancing between affordability and stability. The relatively low renter share suggests untapped potential in the rental market, which could be capitalized upon by providing quality Section 8 units. Overall, the ZIP code offers a promising investment environment for those willing to engage with the Section 8 program, leveraging higher guaranteed rental incomes against a moderate property value backdrop.

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.