Location: St. Cloud, MN | Metro: St. Cloud, MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
The potential risks for investing in Section 8 properties in ZIP code 56302 in Unknown, MN, are significant and should be carefully considered. Firstly, the tenant turnover rate is unknown, which can lead to unpredictable financial outcomes. Market rents are not available, but the Fair Market Rent (FMR) for FY 2024 is set at $1190, indicating a benchmark for rental rates. However, without knowing the actual market rent, it's difficult to assess how competitive this figure is.
Vacancy exposure is another critical concern. The average days on market (DOM) for vacant properties is also not specified, making it challenging to estimate the time it might take to fill vacancies. This uncertainty can result in extended periods where the property does not generate income, leading to financial strain on the landlord.
Deferred maintenance is a substantial risk factor. With no data on the typical home value or median income in the area, it's hard to gauge the financial health of tenants and their ability to maintain the property. This lack of information increases the likelihood that landlords may face higher-than-average maintenance costs, especially if the tenants have limited resources.
Despite these risks, there is a silver lining. The percentage of renters in the area is unknown, but generally, a high renter share indicates robust demand for rental housing and Section 8 vouchers. Vouchers can provide a stable source of income, even when market conditions fluctuate.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP code 56302, due to the lack of specific data on market rents, days on market, and home values, which makes it harder to predict and manage financial outcomes.
Data Sources: FMR data from HUD (2027).
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.