Location: Duluth, MN | Metro: Duluth, MN-WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
U.S. Census Bureau data (2024)
The ZIP code 54864 stands out due to its unique demographic and economic characteristics. With a population of 1,590 residents, only 4.6% of whom rent their homes, this area is predominantly characterized by homeownership. The median income here is $91,250, indicating a middle-class community. However, the median home value at $303,205 suggests that owning a home in this ZIP code can be quite costly.
Moving to the specifics of Section 8 housing, the Fair Market Rent (FMR) for ZIP 54864 in fiscal year 2024 is set at $1,280. This amount is notably higher than the actual market rent, which is recorded at $943 according to the Census American Community Survey (ACS). This discrepancy means that landlords who accept Section 8 vouchers can expect to receive a higher rent payment than what the market typically demands. Consequently, the potential exists for landlords to earn a premium on their rental properties if they choose to participate in the Section 8 program.
The data signature for ZIP 54864 indicates a stable environment. The low percentage of renters combined with a relatively high median income and median home value points towards a community where most individuals can afford to purchase their own homes. Despite this stability, the opportunity to capitalize on the higher FMR through Section 8 participation remains a significant consideration for landlords and small-portfolio investors. Given the favorable economic conditions for accepting vouchers, it is a viable strategy for those looking to ensure consistent and reliable rental income without the risks associated with market fluctuations.
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.