Location: Wilkin County, MN | Metro: Grant County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,770 |
| 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)
In ZIP code 56522, there are several factors that could negatively impact an investment in Section 8 properties. First, tenant turnover is likely to be higher when renting at the market rate of $900 compared to the Federal Market Rent (FMR) of $1,320 for fiscal year 2026 in the metro area. This discrepancy suggests that tenants might prefer higher-quality housing options outside of the Section 8 program, leading to increased churn and associated costs such as cleaning, repairs, and advertising.
Vacancy exposure is another concern, especially since the days on market (DOM) data is not available. This makes it difficult to predict how long a property might remain vacant between tenancies. A prolonged vacancy period can significantly affect cash flow, reducing profitability and increasing financial pressure on the landlord.
The deferred-maintenance exposure is also notable. With a median income of $82,361 and no typical home value provided, it's challenging to assess the likelihood of deferred maintenance issues being addressed promptly. However, higher incomes generally correlate with better financial health among tenants, potentially mitigating some of these risks. Still, landlords should be prepared for potential delays in maintaining properties to meet inspection standards.
Despite these challenges, the high renter share of 11.9% in ZIP 56522 indicates a strong demand for rental properties, which typically translates into higher voucher demand. This means that while there are risks involved, the probability of finding qualified tenants through the Section 8 program is relatively high, providing a stable source of rental income.
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.