Location: Duluth, MN | Metro: Duluth, MN-WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
U.S. Census Bureau data (2024)
In ZIP code 55711, there are several factors that could pose challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, as the market rent of $950 is notably lower than the Fair Market Rent (FMR) of $1080 for FY 2024. This discrepancy suggests that tenants might be inclined to leave once they secure higher-paying jobs or alternative housing options, leading to frequent vacancies. Additionally, the vacancy exposure is heightened due to the lack of available data on days on market (DOM), which leaves uncertainty around how quickly units can be filled. The deferred maintenance risk is also present, given the relatively modest typical home value of $202,124 and median income of $61,250. These figures indicate that residents may have limited funds to address property upkeep beyond what their vouchers cover, potentially resulting in increased maintenance costs for landlords.
Despite these risks, the high renter share of 9.3% is a positive indicator. High renter density often correlates with a greater demand for rental properties, including those that accept Section 8 vouchers. This means that landlords in ZIP 55711 can expect a steady pool of potential tenants who rely on government assistance, reducing the likelihood of prolonged vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). 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.