Section 8 Fair Market Rent (FMR) for ZIP 55704 - 2027

Location: Pine County, MN | Metro: Pine County, MN

Investment Score for ZIP 55704

F
Monthly Rent (2BR)
$1,010
Median Price (2BR)
$193,359
1% Rule
0.52%
Annual Yield
6.27%

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$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

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
2BR $1,010 $193,359 0.52% F
3BR $1,210 $272,384 0.44% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
1,051
Median Household Income
$62,500
Housing Units
609
Renter Percentage
18.9%
Occupancy Rate
82.4%
Renter Occupied
95

The ZIP code 55704 in Minnesota has a population of 1,051 residents, with 18.9% being renters. This indicates that it is not a heavily renter-dominated area, but rather a community with a mix of homeowners and renters. The median household income stands at $62,500, which provides a baseline for understanding the financial capacity of potential tenants.

The typical market rent in this area is $488, representing approximately 8.8% of the median household income. This suggests that rent is relatively affordable for the majority of residents. However, when compared to the Fair Market Rent (FMR) of $970 for the metro area (FY 2026), the actual market rent is significantly lower, indicating a disparity between the local rental market and the broader metro area standards.

Given the lower rent prices and the percentage of renters, landlords in ZIP 55704 can expect a tenant pool that is somewhat reliant on housing vouchers to manage their living expenses. The $488 market rent is only about half of the FMR, which means that tenants with Section 8 vouchers could find this ZIP code particularly attractive due to the affordability gap. This makes it a viable location for landlords willing to participate in the voucher program, as they can expect a steady demand from tenants looking for subsidized housing options.

To summarize, while ZIP 55704 is not dominated by renters, it offers an opportunity for landlords who are prepared to accept Section 8 vouchers. The expected tenant would be someone who benefits from the lower-than-average rent costs and requires financial assistance to cover housing expenses, aligning well with the available Section 8 support.

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.