Location: Cook County, MN | Metro: Cook County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
U.S. Census Bureau data (2024)
In ZIP code 55606, there are several notable risks for landlords considering Section 8 investments. Tenant turnover is a significant concern due to the disparity between market rents and the Fair Market Rent (FMR) set at $1,010 for FY 2026 in the metro area. This gap can lead to higher churn rates as tenants may seek better deals outside of the program. Vacancy exposure is another issue, as the Days on Market (DOM) figure is currently unavailable, indicating potential difficulty in predicting how long it might take to fill vacancies. Given the typical home value of $347,952 and a median income of $85,000, there's also a risk of deferred maintenance, which can be exacerbated by the financial constraints faced by lower-income households. Landlords must ensure they have adequate reserves to maintain properties without relying solely on rental income.
However, these risks are somewhat mitigated by the high concentration of renters in the area, with 1.7% of the population being renters. High renter density often correlates with greater demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of tenants. The presence of Section 8 tenants can help fill vacancies quickly, reducing the likelihood of prolonged periods without rental income.
The verdict for ZIP 55606 is moderate risk for a first-time Section 8 landlord. While there are significant challenges, the high renter density provides a solid foundation for managing a portfolio under the Section 8 program.
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.