Location: Traverse County, MN | Metro: Big Stone County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The ZIP code 56240 presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant concern, with the market rent at $739 being notably lower than the Fair Market Rent (FMR) of $970 for the fiscal year 2026 in the metropolitan area. This discrepancy suggests that tenants may be more likely to leave once they find a place that better matches their financial expectations.
Vacancy exposure is another critical issue. The average days on market (DOM) for properties in this area is not available, which makes it difficult to predict how long a property might remain vacant between tenants. A prolonged vacancy can lead to significant financial losses, especially when combined with the lower market rent.
Deferred maintenance is also a risk factor. With a typical home value of $183,491 and a median income of $76,500, there's potential for owners to delay necessary repairs and upgrades due to financial constraints. This could result in higher maintenance costs and decreased property value over time if not addressed promptly.
However, these risks must be weighed against the high concentration of renters in the area. The 34.2% renter share indicates a robust demand for rental properties, which often translates into a higher demand for Section 8 vouchers. This increased demand can provide a steady stream of qualified tenants, mitigating some of the risks associated with turnover and vacancy.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 56240 is moderate.
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.