Location: Murray County, MN | Metro: Lyon County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
U.S. Census Bureau data (2024)
In ZIP code 56115, there are several risks associated with investing in Section 8 properties that must be considered. First, tenant turnover is a significant concern. The market rent stands at $1,079, while the Fair Market Rent (FMR) for FY 2026 is set at $1,240. This difference can lead to frequent changes in occupancy, as tenants may prefer properties closer to the FMR. High turnover rates increase operational costs and reduce profitability.
Vacancy exposure is another issue. With the days on market (DOM) being N/A, it's unclear how long properties might remain vacant. In a competitive rental market, vacancies can be costly, especially if they extend for an unknown period. Landlords should prepare for potential gaps in rental income and consider strategies to mitigate this risk.
The deferred maintenance exposure is also notable. Given the typical home value of $214,485 and a median income of $64,000, many homeowners may struggle to keep up with necessary repairs and improvements. This can translate into higher maintenance costs for landlords who take over these properties, as they will need to invest in bringing them up to standard.
However, these risks must be weighed against the high concentration of renters in the area. With a 20.4% renter share, there is likely strong demand for rental properties, including those that accept Section 8 vouchers. High renter density often correlates with increased voucher usage, providing a stable source of income for landlords willing to participate in the program.
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.