Location: Cook County, MN | Metro: Cook County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 55613 centers around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $1,210. However, the current market rent for the area is not available, which complicates a direct comparison. Despite this lack of current market data, we can infer that if the market rent were to be higher than the FMR, landlords would face a significant challenge in maintaining profitability while participating in the Section 8 program.
To illustrate the potential impact, let's assume the market rent is at least $1,500, a common figure in similar areas. The gap between the FMR and the market rent would then be $290, or approximately 19.3%. This means landlords accepting Section 8 tenants would receive a rental rate that is nearly 20% lower than what they could potentially charge to non-voucher tenants. In such a scenario, the cost of housing voucher tenants below open-market rates becomes a critical factor for landlords and small-portfolio investors.
In ZIP code 55613, only 12.1% of residents are renters, indicating a primarily owner-occupied market. The median household income is $58,958, suggesting that most residents have the financial capacity to afford market-rate rents. Given these conditions, landlords who participate in the Section 8 program must carefully consider the trade-offs between the guaranteed payment from the government and the potential for higher yields from market-rate rentals.
If the FMR were to exceed the market rent, it would create a different dynamic. Landlords would see an opportunity to generate higher yields by renting to voucher holders. However, since the market rent is currently unavailable, we cannot confirm whether this scenario applies to ZIP code 55613. Nonetheless, the importance of understanding local rental trends and the specific terms of the Section 8 program remains crucial for maximizing investment returns.
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.