The zip code has experienced demographic shifts over the past decade. The population increased slightly from 3,515 in 2014 to 3,597 in 2022. Median income rose from $53,640 in 2014 to $65,400 in 2022, indicating an improvement in economic conditions.

Racial demographics have remained predominantly white, decreasing slightly from 87% in 2014 to 86% in 2022. The Hispanic population increased from 11% to 12% during this period. These demographic changes may have influenced the need for affordable housing in the area.

The completion of Highland Commons in 2015 aligns with a period of relative population stability and increasing median income. This suggests that the LIHTC project was implemented to address a specific affordable housing need that emerged despite overall positive economic indicators.

Zip code 55307 in Arlington, Minnesota, has a modest but significant LIHTC-funded affordable housing presence, with 41 units representing about 2.97% of the estimated housing stock. The single project, Highland Commons, completed in 2015, marks the beginning of LIHTC involvement in the area. While the zip code has experienced slight population growth and increased median income over the past decade, the implementation of this affordable housing project indicates a recognized need for low-income housing options. The diverse unit mix in the project suggests an effort to cater to various household sizes within the low-income community.