Location: Cook County, MN | Metro: Cook County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The ZIP code 55605 is situated in a small, tight-knit community with a total population of 572 residents. This neighborhood is characterized by a significant rental market, with 42.7% of its inhabitants being renters. The median income for the area stands at $56,250, indicating a middle-class demographic where affordability plays a crucial role in housing decisions. Notably, the median home value is not available, which could suggest that the majority of the properties are either rentals or that the data is sparse due to the limited number of homes.
Moving into the specifics of rent economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. However, the actual market rent in ZIP 55605, according to Census ACS data, is significantly lower at $521 per month. This substantial gap between the FMR and the market rent presents an opportunity for both hands-off voucher operators and hands-on value-add buyers.
For hands-off voucher operators, the lower market rent compared to the FMR means that landlords can potentially receive higher payments through the Section 8 program without significantly increasing their rental rates. This scenario allows for steady cash flow with minimal management overhead, as the government covers a larger portion of the rent for eligible tenants.
In contrast, hands-on value-add buyers can leverage the disparity between FMR and market rent to improve properties and increase rents closer to the FMR level. Given the strong demand from renters and the relatively low cost of acquiring properties, these investors can enhance property values and attract tenants willing to pay more, thereby maximizing returns on investment.
In summary, ZIP 55605 offers a balanced environment for both types of investors. Hands-off operators benefit from the existing lower market rents, while hands-on buyers can find opportunities to add value and capitalize on the potential for higher rental income.
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.