Section 8 Fair Market Rent (FMR) for ZIP 54854 - 2027

Location: Duluth, MN | Metro: Duluth, MN-WI MSA

FY 2027 Fair Market Rent Rates

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

960

Median Household Income

$88,125

Housing Units

450

Renter Percentage

12.1%

Occupancy Rate

77.1%

Renter Occupied

The ZIP code 54854, located in Wisconsin, is a residential area that offers a mix of suburban and rural characteristics. It is known for its quiet neighborhoods and proximity to natural landscapes, which attract families and individuals seeking a peaceful living environment. For real estate investors, particularly those interested in Section 8 housing, understanding the local rental market dynamics is crucial.

Fair Market Rent (FMR): The FMR for ZIP 54854 in fiscal year 2024 is set at $1060, providing a benchmark for rental rates that landlords can use to ensure their properties are competitive while still adhering to government guidelines.
Market Rent: According to the latest Census American Community Survey (ACS) data, the average market rent in the area is $753, indicating that there is potential for landlords to increase rents closer to the FMR without pricing out the majority of tenants.
Median Home Value: The median home value in ZIP 54854 is $253,655, which suggests that homeownership is accessible to many residents, but there remains a significant portion of the population that relies on rentals.
Renter Share: Only 12.1% of the population in this ZIP code are renters, implying that the rental market is smaller compared to other areas, and landlords should focus on quality and location to attract tenants.
Days on Market (DOM): Data on the average days a property is on the market before it is rented is currently unavailable, which could indicate either a stable market or a lack of comprehensive reporting.
Median Income: With a median household income of $88,125, the area is economically stable, which supports a steady demand for both rental and ownership properties.

In summary, ZIP 54854 presents a niche opportunity for landlords and small-portfolio investors focused on Section 8 housing. The disparity between the FMR and the current market rent suggests room for price adjustments without alienating tenants. Given the relatively low renter share, the competition for rental properties is less intense, allowing investors to leverage the economic stability of the area by focusing on well-maintained, desirable rental units. Despite the limited data on days on market, the overall economic health and the presence of a government-set FMR provide a solid foundation for making informed investment decisions.

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.