Location: Pine County, MN | Metro: Kanabec County, MN
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $272,716 | 0.4% | F |
| 3BR | $1,410 | $317,066 | 0.44% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 55030, located in the Pine County, MN metro area, does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,060 for fiscal year 2026 is significantly lower than the market rent of $1,739 reported by the Census ACS. This discrepancy means that landlords participating in the Section 8 program would receive less than half of the typical market rent, which could result in financial strain.
Regarding property acquisition, the median home value of $292,313 presents a challenge for affordability. However, without specific data on the average days on market (DOM) and the percentage of homes needing price cuts, it's difficult to provide a precise analysis. Landlords should be cautious when considering purchasing properties in this area due to the high median home value, which might not align well with the lower rental income from Section 8 tenants.
Tenant demand is relatively low in ZIP 55030. With a total population of 1,711, only 13.5% are renters. This indicates that there are approximately 231 potential renters in the area. Given the limited number of renters, competition for tenants could be fierce, and landlords might struggle to fill vacancies consistently.
In conclusion, while there are some potential renters in ZIP 55030, the rent math does not favor landlords due to the significant gap between the FMR and market rent. Additionally, the high median home value makes property acquisition costly, and the low renter share suggests limited tenant demand. These factors collectively indicate that investing in this ZIP code for Section 8 properties is not advisable unless other compensating factors exist, such as below-market-value purchase opportunities or substantial subsidies beyond the standard FMR.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.