Location: Clearwater County, MN | Metro: Grand Forks, ND-MN MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 56646 highlights several critical issues that potential Section 8 landlords should consider. Tenant turnover poses a significant challenge, with market rent at $1,125 compared to the Federal Market Rent (FMR) of $910 for FY 2024. This disparity can lead to higher vacancy rates, as tenants may struggle to afford the market rent upon lease renewal.
Vacancy exposure is another concern. The Days on Market (DOM) data is not available, which makes it difficult to predict how quickly properties might be filled if they become vacant. This uncertainty can impact cash flow and overall profitability.
Deferred maintenance is also a risk factor. With a typical home value of $298,907 and a median income of $48,750, homeowners may find it challenging to keep up with necessary repairs and maintenance, especially when relying on the fixed rental payments from Section 8 vouchers. This could result in higher maintenance costs for landlords who take over these properties.
However, the high renter share of 24.8% in ZIP 56646 suggests a robust demand for rental housing, including Section 8 vouchers. High renter density typically indicates a steady pool of tenants who are eligible for and interested in subsidized housing, reducing the risk of prolonged vacancies.
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.