Location: Lake County, MN | Metro: Lake County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 55607 reveals several key points regarding its viability for Section 8 real-estate investments.
The rent math does not work effectively due to the lack of market rent data. The Fair Market Rent (FMR) for ZIP 55607 in fiscal year 2024 is set at $1000. Without specific market rent figures, it's challenging to determine if this aligns with what tenants can afford or what landlords can expect to earn. This uncertainty is critical for assessing the profitability of rental properties under the Section 8 program.
Acquisition in ZIP 55607 appears affordable, given the median home value of $211,676. However, the absence of data on days on market (DOM) and the percentage of homes needing price cuts to sell indicates that the housing market dynamics are unclear. Landlords and small-portfolio investors should proceed with caution, considering these missing factors could impact the ease and cost of acquiring properties.
Tenant demand in ZIP 55607 is low. With a total population of 192, only 2.7% are renters. This suggests that there is limited interest among residents to rent, which could translate into fewer applications and longer vacancy periods for rental properties. Given the small number of potential renters, securing long-term, stable tenancy might be difficult.
Overall, ZIP 55607 presents a challenging environment for Section 8 investments. The lack of market rent data complicates the rent math, while the limited tenant demand poses significant risks. Although the median home value is relatively low, making acquisitions potentially affordable, the incomplete housing market indicators suggest that further investigation is necessary before committing to investment in this area.
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.