No, Rural Development loans insured by USDA does not have PMI.

USDA RD loans do not have Monthly PMI, but they do have a charge of 3.50% of the amount borrowed as an upfront mortgage insurance premium (or RD Guarantee fee). They allow you to finance in the cost of the Upfront Mortgage Insurance Premium/RD Guarantee fee. This is charged on ALL USDA loans, regardless of the lender.