Location: Itasca County, MN | Metro: Aitkin County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 55748 in Hill City, MN, must be carefully considered. First, tenant turnover can be a significant issue when the market rent is $765 compared to the Fair Market Rent (FMR) of $990 for FY 2026 in the metropolitan area. This disparity indicates that tenants might struggle to afford the higher FMR, leading to frequent moves and increased vacancy periods.
Vacancy exposure is another concern, especially since the days on market (DOM) for vacant properties is not available. This lack of data makes it difficult to predict how long it might take to find a Section 8 tenant, potentially leading to extended periods without rental income.
Deferred maintenance is also a risk, particularly when considering the typical home value of $186,318 and the median income of $53,810. These figures suggest that residents might have limited funds to cover unexpected repairs or maintenance, which could fall on the landlord. The financial strain could lead to neglect, impacting property values and increasing repair costs over time.
However, these risks are offset by the high 17.5% share of renters in the area, which typically correlates with higher demand for housing vouchers. A larger pool of potential voucher holders can stabilize occupancy rates and provide a steady stream of rental income.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.