Location: Duluth, MN | Metro: Duluth, MN-WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 54849 in fiscal year 2024 is set at $1020. This figure represents the maximum amount that the U.S. Department of Housing and Urban Development (HUD) will pay to landlords participating in the Section 8 program. It's important to note that this is not the rent you can charge your tenant; it's the reimbursement limit for the housing assistance payment.
To put this into perspective, the average rent in ZIP 54849, based on Census American Community Survey (ACS) data, is $836. This means that the FMR is approximately $184 higher than the typical market rate, which could be beneficial for landlords looking to cover costs and make a profit.
With a 9.5% share of renters in the area, there is a consistent demand for affordable housing options. This percentage indicates that nearly one in ten residents are likely to be interested in Section 8 housing, providing a steady pool of potential tenants.
When acquiring a property for Section 8, consider the median home value of $343,674. This price point should be factored into your investment strategy, taking into account the long-term benefits and potential challenges of managing a Section 8 property.
A critical step before committing to a Section 8 rental is to verify that the property meets HUD's Housing Quality Standards (HQS). These standards ensure that the unit is safe, decent, and sanitary for tenants. Failure to meet these criteria can result in reduced payments or termination from the program, so it's essential to confirm compliance to avoid future issues.
In summary, the FMR of $1020 offers a clear guideline for the reimbursement you can expect from the government. The local average rent of $836 suggests a potentially profitable margin, while the 9.5% renter share points to a viable market for affordable housing. With an acquisition cost of around $343,674, your investment should be carefully planned. Lastly, ensuring your property meets HQS is crucial for maintaining a successful Section 8 rental in ZIP 54849.
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.