Location: Duluth, MN | Metro: Duluth, MN-WI MSA
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 | $790 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $338,184 | 0.47% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 55707 stands at $82,167, indicating a relatively affluent area. However, when considering the market rate for rent, which is $920 according to the latest Census ACS data, households might face challenges. This figure represents the average rent cost in the area, but it doesn't fully capture the financial strain on renters.
To put this into perspective, the Fair Market Rent (FMR) for the zip code as set by the federal government for fiscal year 2024 is $1,080. This means that the voucher payment standard exceeds the market rate by $160. For landlords, this presents an opportunity to receive higher payments through Section 8 vouchers compared to the typical market rate.
With only 13.6% of the population being renters and a total population of 3,470, competition among landlords could be fierce. The affordability gap between the median income and both the market rate and FMR suggests that many potential tenants may struggle to pay rent without assistance. This could lead to a scenario where landlords who accept vouchers might have an easier time finding and retaining tenants, as they can offer affordable housing options.
Landlords considering their strategy should focus on the benefits of accepting vouchers. While the market rate is lower at $920, the voucher payment of $1,080 provides a guaranteed income that aligns with the federal standards. Moreover, in an area where the number of renters is limited, landlords who are willing to work with Section 8 vouchers may find themselves with a steady stream of tenants who can reliably pay rent, even if the overall rental market is tight.
In conclusion, for landlords in ZIP 55707, accepting Section 8 vouchers offers a clear advantage over relying solely on cash-paying tenants. The higher payment standard of $1,080 ensures a more stable and reliable income source, especially given the limited pool of renters and the financial constraints many face despite the median income level. This strategy can help landlords navigate the competitive landscape and ensure consistent occupancy.
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.