Location: Koochiching County, MN | Metro: Duluth, MN-WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
U.S. Census Bureau data (2024)
The ZIP code 55772 presents several challenges for potential Section 8 landlords. Tenant turnover is a significant concern, with the market rent at $839 being notably lower than the Fair Market Rent (FMR) of $980 for fiscal year 2024. This disparity suggests that tenants receiving vouchers might be more inclined to move out once their financial situation improves, leading to higher vacancy rates.
Vacancy exposure is another issue, as the days on market (DOM) for rental properties in this area is currently unknown, indicating potential difficulties in finding and retaining tenants. Additionally, the lack of specific data on the typical home value and median income in the ZIP code makes it challenging to assess the overall economic stability and maintenance capabilities of the residents. This uncertainty can translate into deferred maintenance issues, which could increase repair costs and reduce property value over time.
However, these risks must be weighed against the substantial 69.7% renter share in the area. High renter density typically correlates with a robust demand for housing vouchers, which can provide a steady stream of tenants. The presence of many renters also indicates a strong likelihood of continued demand for affordable housing, even if individual tenants cycle through properties.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 55772 is moderate. While there are notable risks associated with tenant turnover and potential deferred maintenance, the high renter share offers a buffer against long-term vacancies and ensures a consistent pool of eligible tenants.
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.