Section 8 Fair Market Rent (FMR) for ZIP 56593 - 2027

FY 2027 Fair Market Rent Rates

The ZIP code 56593 in Unknown, MN presents several challenges for landlords considering Section 8 investments. First, the tenant turnover rate is concerning due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1,030 for FY 2026 in the metro area. If the market rent is lower than the FMR, landlords might face difficulties attracting tenants who can afford the higher rental amount, leading to increased turnover.

Vacancy exposure is another significant risk factor. With an unknown number of days on the market (DOM), it's challenging to predict how long properties might remain vacant. A prolonged period of vacancy can lead to financial losses for landlords, especially if they are not prepared for extended periods without rental income.

The deferred-maintenance exposure is also notable. Without specific data on the typical home value and median income in ZIP 56593, landlords must be cautious about the potential for homes needing substantial repairs or upgrades that may not be covered by the FMR. This can result in additional costs that reduce profitability.

However, these risks are somewhat mitigated by the high concentration of renters in the area. The unknown percentage of the renter share suggests a strong demand for rental housing, which typically translates into higher demand for Section 8 vouchers. This means that despite the challenges, there is a good chance of finding tenants willing to use their vouchers in this ZIP code.

Verdict: Moderate risk for a first-time Section 8 landlord.

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.