Location: Lake County, MN | Metro: Lake 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 | $920 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $170,887 | 0.77% | D |
| 3BR | $1,570 | $192,305 | 0.82% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP code 55614 in Minnesota reveals a unique balance between yield and stability that may appeal to both high-yield seekers and those looking for steady cash flow.
The Fair Market Rent (FMR) for ZIP 55614 in fiscal year 2024 is set at $1,270. This is notably higher than the market rent of $1,138, indicating a potential opportunity for landlords to secure higher rental income compared to typical market rates. However, the median home value in this area stands at $183,795, which suggests that the investment cost is relatively moderate, making it feasible for small-portfolio investors to acquire properties without an excessive capital outlay.
Regarding stability, the percentage of renters in the area is 14.5%, which is lower than the national average. This could imply a less volatile rental market due to a smaller proportion of transient residents. Unfortunately, the data does not provide the number of days on the market (DOM), which would be useful for assessing how quickly properties can be rented out. The median household income in ZIP 55614 is $72,981, which provides a reasonable level of financial security for tenants, reducing the risk of default and improving overall stability.
Based on these figures, ZIP 55614 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The higher FMR compared to market rent supports a decent yield, while the lower percentage of renters and moderate income levels suggest a stable environment for long-term investments. Landlords should consider these factors when deciding whether to enter this market, weighing the potential for slightly above-average returns against the risks associated with a less dynamic rental sector.
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.