Location: Koochiching County, MN | Metro: Koochiching County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
In evaluating the investment risk for Section 8 properties in ZIP code 56668, several factors suggest potential challenges that landlords might face. Tenant turnover is a significant concern, especially when comparing the non-disclosed market rent to the $970 Fair Market Rent (FMR) set for fiscal year 2026 in the metro area. This discrepancy can lead to higher tenant churn rates as individuals may seek better deals outside the Section 8 program.
Vacancy exposure is another critical issue, as the non-disclosed days on market (DOM) indicate an unclear timeframe for filling vacancies. This uncertainty can result in lost rental income and increased advertising costs. Furthermore, the deferred maintenance exposure is notable given the non-disclosed typical home values and a median income of $116,250. Landlords should be prepared to invest in property upkeep, as lower-income tenants may not have the financial means to address minor damages promptly.
Despite these risks, the 11.7% renter share in ZIP 56668 presents a silver lining. High renter density often correlates with a robust demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of income. The presence of many renters also suggests a competitive environment where landlords who offer well-maintained properties can attract and retain tenants effectively.
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.