Section 8 Fair Market Rent (FMR) for ZIP 55604 - 2027

Location: Cook County, MN | Metro: Cook County, MN

Investment Score for ZIP 55604

Monthly Rent (2BR)

$1,080

Median Price (2BR)

$428,336

1% Rule

0.25%

Annual Yield

3.03%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$750
1 Bedroom	$990
2 Bedrooms	$1,080
3 Bedrooms	$1,500
4 Bedrooms	$1,580
5 Bedrooms	$1,833
6 Bedrooms	$2,053
7 Bedrooms	$2,217
8 Bedrooms	$2,328

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$990	$344,496	0.29%	F
2BR	$1,080	$428,336	0.25%	F
3BR	$1,500	$493,752	0.3%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,719

Median Household Income

$73,427

Housing Units

3,558

Renter Percentage

23.4%

Occupancy Rate

49.4%

Renter Occupied

412

ZIP code 55604, located in Grand Marais, MN, within the Cook County, MN metro area, presents an interesting mix of characteristics that distinguish it from other ZIP codes in the region. The Fair Market Rent (FMR) for ZIP 55604 is set at $1,020 for fiscal year 2026, which is notably higher than the average market rent of $947. This suggests that the government's estimate of what is considered a fair rent for the area is slightly above what the market is currently offering.

The median home value in ZIP 55604 stands at $407,331, which is lower compared to some of the larger, more developed areas in Cook County but still represents a significant investment. With a renter share of 23.4%, this ZIP code has a higher proportion of renters relative to homeowners compared to the broader county averages. This combination of a below-average home value and a relatively high renter share could indicate that ZIP 55604 is a value pocket within the Cook County metro area, particularly attractive to those seeking rental properties under Section 8.

To further contextualize, let’s consider how these figures might influence investment decisions:

Fair Market Rent vs. Market Rent: The discrepancy between the FMR and the actual market rent can be seen as a positive indicator for landlords participating in the Section 8 program. It means they can potentially receive higher rents through the program than what the market offers.
Home Value: At $407,331, the median home value is lower than some parts of Cook County, making it a more affordable option for both investors and residents. This could suggest that the area is less developed or has fewer amenities, which could impact property demand and desirability.
Renter Share: A 23.4% renter share indicates a substantial portion of the population relies on renting. This could be due to various factors such as seasonal employment, limited job opportunities, or young professionals who prefer renting over buying. For landlords, this translates into a steady demand for rental properties.

In summary, ZIP 55604 appears to be a value pocket within the Cook County metro, offering opportunities for landlords and small-portfolio investors who can leverage the higher FMR and the significant renter share to their advantage. However, the lower home values also suggest that the area may have different dynamics compared to the rest of the county, which should be considered in investment strategies.

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.