Location: Duluth, 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 |
|---|---|---|---|---|
| 2BR | $1,110 | $237,913 | 0.47% | F |
| 3BR | $1,530 | $280,688 | 0.55% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 55763, which encompasses Makinen, MN, within Saint Louis County and the broader Duluth, MN-WI MSA metro area, reveals key insights into rental dynamics and investment potential.
Housing and Urban Development (HUD) Fair Market Rent (FMR) for FY 2024 is set at $980 for this ZIP code. However, the absence of current market rent data complicates a direct comparison, suggesting that local rental markets may be less active or less reported. Despite this, we can infer that voucher tenants would likely cashflow at the FMR rate, given the limited supply of rental properties and the relatively low cost of living in the region.
To understand the broader economic context, consider the median home value in ZIP 55763, which stands at $207,426. Using this figure, we can calculate a rough rent-to-price ratio. Assuming a typical mortgage payment of around $1,000 based on current interest rates and the median home value, the FMR of $980 suggests that investors might find it challenging to achieve positive cashflow from purely rental income without considering other factors such as property taxes, maintenance, and insurance costs.
The lack of specific day median Days on Market (DOM) and percentage of price cuts indicates stable real estate markets, where properties do not remain unsold for extended periods, nor do they typically require significant price reductions. This stability supports a conservative investment strategy focused on long-term holding rather than flipping.
In conclusion, the strongest investor angle in ZIP 55763 is likely to be stability. With a low median home value and a steady rental market, investors can expect consistent returns and minimal fluctuations in property values over time.
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.