Location: Itasca County, MN | Metro: Itasca County, MN
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 | $860 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $980 | $195,382 | 0.5% | F |
| 2BR | $1,240 | $256,416 | 0.48% | F |
| 3BR | $1,610 | $291,396 | 0.55% | F |
| 4BR | $1,740 | $354,501 | 0.49% | F |
| 5BR | $2,018 | $426,983 | 0.47% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 55744, located in Grand Rapids, MN within the Itasca County metro area, does not favor landlords. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,130, while the actual market rent reported by the Census ACS stands at $1,092. This discrepancy suggests that landlords aiming for the FMR might find it challenging to attract tenants willing to pay above the current market rate.
Acquisition costs in the area are relatively affordable. With a median home value of $272,659, potential investors can acquire properties at a reasonable cost. However, the lack of data on days on market (DOM) and the low percentage of homes experiencing price cuts (0.1%) indicate that the market is not particularly liquid, and sellers are holding firm on their asking prices. This could make it harder for new investors to enter the market quickly.
Tenant demand is moderate in ZIP 55744. The area has a population of 20,295, with 23.1% of residents being renters. This suggests a steady pool of potential tenants but also indicates that competition for rental units is likely to be strong among landlords.
Verdict: While the acquisition cost of properties in ZIP 55744 is reasonable, the rent math does not currently support the higher rents projected by the FMR. Tenant demand exists but is tempered by the competitive landscape. Landlords should align their rental pricing closer to the market rate of $1,092 to ensure occupancy and profitability. The stagnant market for property sales may require patience when seeking investment opportunities.
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.