Location: Pine County, MN | Metro: Pine 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $780 | $178,120 | 0.44% | F |
| 2BR | $1,010 | $261,362 | 0.39% | F |
| 3BR | $1,210 | $327,181 | 0.37% | F |
| 4BR | $1,390 | $379,625 | 0.37% | F |
| 5BR | $1,612 | $452,935 | 0.36% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 55063, Minnesota, stands at $74,667. Given the market rate for rent at $746 according to Census ACS data, a household in this area can indeed afford the typical rent. However, when compared to the federal payment standard of Fair Market Rent (FMR) set at $970 for the metro area in fiscal year 2026, the gap between what renters can afford and what the government will pay becomes apparent.
The disparity suggests that landlords could potentially face challenges in attracting tenants who are willing or able to pay the higher voucher amount. With only 19.8% of the 9,212 population being renters, competition among landlords for these tenants is likely to be fierce, especially if many are seeking to participate in the voucher program.
The affordability gap means that landlords must carefully consider their strategy. If they aim to cater to voucher recipients, they will need to ensure that their properties meet the necessary standards to qualify for the higher payment rates. On the other hand, focusing on cash-paying tenants who are comfortable with the current market rate of $746 could offer a simpler management experience but might limit the pool of potential residents given the relatively low percentage of renters in the area.
Takeaway: Landlords in ZIP 55063 should weigh the benefits of accepting Section 8 vouchers against the demands of maintaining properties to higher standards and the potential complexity of working with the housing authority. While vouchers provide a guaranteed payment of $970, landlords must also consider the overall demand and competition from other rental properties in the area. A strategic approach to both voucher and cash-pay tenants could maximize occupancy and profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.