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 | $920 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $246,352 | 0.52% | F |
| 3BR | $1,720 | $240,802 | 0.71% | D |
| 4BR | $2,040 | $286,200 | 0.71% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 56387, which encompasses Waite Park, MN, is built around the slight discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1190, while the market rent, as indicated by the Zillow Rent Index (ZORI), is $1188. This represents a difference of just $2, or approximately 0.17%, favoring the FMR.
This marginal gap makes the area a yield play for landlords and small-portfolio investors who accept housing vouchers. Despite the FMR being slightly above the market rent, the stability and reliability of voucher payments can offer a consistent cash flow that outperforms the volatility often found in the open rental market. In Waite Park, where 51.3% of residents are renters and the median home value stands at $248,751, the demand for affordable housing is significant. The median household income of $59,009 further underscores the necessity for subsidized housing options, making it likely that voucher holders will continue to seek rental properties in this area.
While the FMR exceeds the market rent by a minimal amount, the overall financial landscape of Waite Park supports the viability of Section 8 properties. Landlords can benefit from the security of government-backed rental payments, even if the rate is only marginally higher than the prevailing market conditions. Additionally, the high percentage of renters and the relatively low median income indicate a strong need for affordable housing solutions, ensuring a steady stream of potential tenants.
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.