Section 8 Fair Market Rent (FMR) for ZIP 55735 - 2027

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

Investment Score for ZIP 55735

F
Monthly Rent (2BR)
$1,240
Median Price (2BR)
$272,515
1% Rule
0.46%
Annual Yield
5.46%

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$940
1 Bedroom$950
2 Bedrooms$1,240
3 Bedrooms$1,540
4 Bedrooms$1,720
5 Bedrooms$1,995
6 Bedrooms$2,234
7 Bedrooms$2,413
8 Bedrooms$2,534

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 $1,240 $272,515 0.46% F
3BR $1,540 $322,707 0.48% F
4BR $1,720 $361,848 0.48% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
1,814
Median Household Income
$63,827
Housing Units
1,375
Renter Percentage
9.6%
Occupancy Rate
58.6%
Renter Occupied
77

The rent math in ZIP 55735 (Finlayson, MN, Pine County, MN metro) does not align perfectly with federal standards. The Fair Market Rent (FMR) set for the area for fiscal year 2026 is $1,190. However, the current market rent, according to the Census ACS, is lower at $1,104. This suggests that landlords might need to adjust their expectations slightly, as the market does not currently support rents at the FMR level.

Acquisition in this area is relatively affordable. The median home value stands at $266,377. Unfortunately, there is insufficient data on days on market (DOM) and the percentage of homes needing a price cut, which could provide further insight into the ease of acquiring properties here. Given the median home value, however, it's clear that entry-level costs are manageable compared to larger metropolitan areas.

Tenant demand is modest given the population size. With only 1,814 residents, the renter share is relatively low at 9.6%. This means that approximately 175 individuals are likely seeking rental accommodations. Landlords should be cautious about oversupplying the market, as the number of potential tenants is limited.

In summary, while the rent math is close to federal guidelines, it does not fully match up, indicating a slight gap between FMR and actual market rates. Acquisition remains affordable, with median home values under $270,000, but the lack of detailed DOM and price-cut data leaves some uncertainty. Tenant demand is present but constrained by the small population, suggesting careful consideration of property offerings to avoid saturation. Overall, ZIP 55735 presents an opportunity for landlords and small-portfolio investors who can navigate these conditions effectively.

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.