Location: Itasca County, 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $890 | $95,479 | 0.93% | C |
| 2BR | $1,110 | $137,092 | 0.81% | C |
| 3BR | $1,530 | $188,068 | 0.81% | C |
| 4BR | $1,870 | $213,747 | 0.87% | C |
| 5BR | $2,169 | $267,712 | 0.81% | C |
U.S. Census Bureau data (2024)
In analyzing the real estate market for ZIP 55746 (Hibbing, MN), several key indicators point to a stable but cautious outlook for the next 12-24 months. The median home value currently stands at $154,200, a figure that reflects the overall affordability and modest growth potential in the area. A notable trend is the observation that 0.1% of listings have been reduced, suggesting that sellers are generally holding firm on their asking prices. This could indicate a level of confidence in the market's ability to support current valuations, although it also points to a seller's market dynamic where price reductions are minimal.
The median Days on Market (DOM) being listed as N/A suggests either very quick sales or a limited number of transactions, which can be indicative of a low volume market. In such conditions, the slight reduction in listings and the stable median home value imply that landlords and small-portfolio investors may have some pricing power, particularly if they can offer homes that are in slightly better condition or have desirable features that distinguish them from the competition.
On the rental side, the Federal Market Rent (FMR) for ZIP 55746 in fiscal year 2024 is projected to be $980, while the current market rent (ZORI) is $1,450. This gap indicates that there is room for rental rates to potentially decrease toward the FMR, or that landlords might need to justify higher rents through property improvements or amenities. However, given the current market rent is already significantly above the FMR, it signals a possible disconnect between government estimates and actual market conditions, which could persist or shift based on economic factors affecting the region.
For long-term investors, the setup in ZIP 55746 does not strongly suggest a robust appreciation thesis. The stable median home values and limited price adjustments in listings point to a market that is unlikely to experience rapid growth. Instead, the focus should be on maintaining properties to command premium rents, given the current disparity between FMR and ZORI. Long-hold investors should prepare for a scenario where rental income remains relatively steady, and capital appreciation is modest at best. This market environment favors investors who can manage properties efficiently and maintain them to stay competitive in both the sale and rental markets.
Investors should also consider the broader economic context of Hibbing, MN. The local economy and employment trends will play a crucial role in determining whether the current rental premiums can be sustained or if they will erode over time. Additionally, any significant changes in local housing policies or external economic shocks could alter the dynamics of both the sale and rental markets.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.