Location: Marshall County, MN | Metro: Beltrami County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in Section 8 properties in ZIP code 56727 are significant. Tenant turnover is a critical issue, with the market rent at $755 being notably lower than the Fair Market Rent (FMR) of $990 for the fiscal year 2026 in the metropolitan area. This discrepancy can lead to higher tenant turnover rates as the subsidized rent does not meet the local housing market's demands, resulting in tenants seeking better-priced accommodations.
Vacancy exposure is another concern. The data does not provide a specific number of days on the market (DOM), which indicates uncertainty regarding how quickly properties might be filled. A prolonged period of vacancy can be costly, as it reduces rental income and increases the likelihood of missed payments under the Section 8 program.
Deferred maintenance is a substantial risk factor, especially considering the typical home value in the area is $195,767 while the median income is $87,250. Lower incomes may correlate with reduced ability to cover non-rent-related expenses, such as repairs and maintenance, which are often the responsibility of the landlord. This financial strain could lead to neglected properties, affecting their long-term value and appeal to tenants.
However, these risks must be weighed against the high renter density in the area, with 11.1% of the population being renters. High renter density generally translates into a greater demand for housing vouchers, which can stabilize occupancy rates. The concentration of renters suggests that there will likely be a consistent pool of voucher holders interested in securing a place to live, potentially mitigating some of the risks associated with vacancy and turnover.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 56727 is moderate.
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.