Location: Kittson County, MN | Metro: Kittson County, MN
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 56755 reveals several critical factors that could impact the performance of Section 8 properties in this area. Tenant turnover is a significant concern, as the Fair Market Rent (FMR) for the metro area stands at $990 for fiscal year 2026, which may not align with local market rents. This misalignment can lead to higher turnover rates if tenants seek more affordable housing options.
Vacancy exposure is another issue, particularly when considering the days on market (DOM) for rental units. While the specific DOM for ZIP 56755 is not available, it's crucial to note that any extended period of vacancy can reduce potential income. Additionally, the deferred maintenance exposure is notable due to the lack of data on typical home values, which could indicate a need for substantial repairs or upgrades to meet Section 8 requirements. The median income of $91,250 suggests that residents might have the financial stability to afford higher rents, but this does not necessarily translate into lower vacancy rates for Section 8 properties.
However, these risks are mitigated by the high concentration of renters in the area, with 5.6% of the population being renters. High renter density typically correlates with increased demand for rental assistance vouchers, which can stabilize occupancy rates and provide a steady stream of tenants. This demand helps ensure that properties will likely remain occupied, 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.