Location: Martin County, MN | Metro: Jackson County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
In ZIP code 56127, there are several risks that a landlord or small-portfolio investor should consider when investing in Section 8 properties. First, tenant turnover can be a significant issue. The market rent of $850 is notably lower than the Fair Market Rent (FMR) of $1,350 for the fiscal year 2026 in the metro area. This disparity suggests that tenants may seek higher-rent accommodations outside of the program, leading to frequent turnover and associated costs.
Vacancy exposure is another concern. With the Days on Market (DOM) being N/A, it's unclear how quickly properties might fill up, especially if the rent is set at the market rate rather than the FMR. Landlords could face extended periods of vacancy, which would result in lost rental income and increased expenses.
Deferred maintenance is also a potential risk. Given the typical home value of $349,959 and a median income of $42,292, homeowners may struggle to keep up with necessary repairs and improvements. This could lead to properties falling below the minimum standards required for Section 8 tenancy, forcing landlords to make costly upgrades to maintain eligibility.
However, these risks must be weighed against the high renter share of 34.1%. High renter density typically indicates a strong demand for rental housing, including those who rely on housing vouchers. This demographic trend supports the likelihood of finding qualified tenants willing to use their vouchers in your properties.
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.