Section 8 Fair Market Rent (FMR) for ZIP 55725 - 2027
Location: Duluth, MN | Metro: Duluth, MN-WI MSA
FY 2027 Fair Market Rent Rates
| 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 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$72,917
To determine if you should buy in ZIP code 55725 for Section 8 investments, follow this decision tree:
- Does FMR $980 (zip FY 2024) clear debt service on a property?
- If the answer is yes, then proceed to the next question.
- If the answer is no, purchasing in this area is not advisable for Section 8 tenants, as the Fair Market Rent (FMR) will not cover your financial obligations.
- Is market rent above, at, or below FMR?
- If market rent is above $980, consider the difference between market rent and FMR. A significant gap might indicate that landlords could struggle to find non-Section 8 tenants willing to pay the FMR, making Section 8 tenancy less attractive.
- If market rent is at or near $980, this aligns well with the FMR and can be a good indicator that Section 8 tenancy is feasible without significant loss.
- If market rent is below $980, it suggests that the FMR is higher than what the market typically bears, which could make properties more attractive to Section 8 tenants.
- Are 10.6% renters + N/A-day Days On Market (DOM) enough demand?
- If the percentage of renters is 10.6%, this indicates a relatively low percentage of the population renting, which might suggest limited demand for rental properties overall.
- The N/A-day DOM means we lack specific data to assess how quickly properties are being rented out. However, if DOM is high, it would imply slower turnover rates, which could affect cash flow negatively.
A final decision hinges on these factors. If FMR covers debt service, market rents align closely with FMR, and there is sufficient demand, the answer is yes. Otherwise, it depends on your tolerance for risk and the specifics of the property in question.
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.