Location: Itasca County, MN | Metro: Itasca County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $970 for ZIP 55722 can adequately cover the mortgage on a home valued at $200,398. According to recent housing market data, the median home value in ZIP 55722 is approximately $197,906, indicating that the home in question is slightly above the median but still within a reasonable range. Zillow projects an increase in home values by 3.0% over the past year, suggesting a positive trend. However, the FMR does not necessarily reflect the mortgage payment required for a home of that value. It's important to consider other factors such as interest rates, property taxes, and insurance costs.
The rental rate of 10.9% might seem low to some investors, raising concerns about the strength of the rental demand. Nonetheless, the median rental price in ZIP 55722 is around $970, which aligns well with the FMR figure. This suggests that there is a stable demand for rentals in the area. While the percentage of renters is lower than in many urban areas, the affordability of housing and the overall cost of living in 55722 make it an attractive location for renters who prefer a quieter environment.
Regarding the use of housing vouchers, the data does not provide a direct comparison between voucher amounts and market rents. However, given that the median home value is significantly below both the national and state averages, it is likely that the gap between voucher amounts and market rents is smaller here than in more expensive markets. This means that vouchers are more likely to cover the rent in ZIP 55722. Yet, without specific figures on the average voucher amount, it's challenging to definitively state whether they will keep pace with market rents.
In summary, while the FMR of $970 alone may not cover all mortgage expenses on a home valued at $200,398, the overall housing market in ZIP 55722 shows promising signs of growth and stability. The rental demand, though modest, is sufficient for maintaining occupancy. Lastly, although vouchers are likely to be more effective in covering rent in this affordable market, specific data on voucher amounts is necessary for a comprehensive analysis.
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.