Location: Pine County, MN | Metro: Mille Lacs County, MN HUD Metro FMR Area
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 | $770 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $920 | $200,662 | 0.46% | F |
| 2BR | $1,020 | $252,706 | 0.4% | F |
| 3BR | $1,410 | $292,675 | 0.48% | F |
| 4BR | $1,700 | $335,109 | 0.51% | F |
| 5BR | $1,972 | $402,432 | 0.49% | F |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 55051 in Minnesota reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for 2024 is set at $1160, while the Census ACS reports the average market rent at $918. This means there is a $242 difference, or approximately a 20.7% premium for landlords who accept Section 8 vouchers.
The higher FMR compared to the market rent makes this area a yield play for voucher tenants. Landlords can potentially increase their rental income by accepting Section 8 vouchers, thereby bridging the gap between the lower market rents and the government-subsidized rates. In an environment where only 19.9% of residents are renters, the demand for affordable housing is strong, and the opportunity to earn above-average returns exists.
However, it's important to consider the broader economic context. With a median home value of $266,122 and a median income of $68,500, the affordability of housing is a critical issue for many residents. The disparity between the FMR and market rent suggests that voucher holders might find it challenging to secure housing at the higher subsidized rate, as most units are priced below this threshold.
Landlords should be aware of the potential implications of setting rents at the FMR level. While they could attract voucher tenants willing to pay the higher rate, doing so might price out other low-income renters who cannot afford the premium. Conversely, if landlords choose to keep rents at or near the market rate of $918, they may see reduced yields compared to what the voucher program allows, but will remain competitive in the local rental market.
To summarize, the gap between FMR and market rent in ZIP 55051 presents a strategic decision point for landlords. Accepting Section 8 vouchers can lead to higher yields, but also requires careful consideration of the local economic conditions and the overall housing market dynamics.
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.