Location: Koochiching 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 |
|---|---|---|---|---|
| 2BR | $1,110 | $242,797 | 0.46% | F |
| 3BR | $1,530 | $296,832 | 0.52% | F |
U.S. Census Bureau data (2024)
The dynamics of ZIP 55771, located in Orr, Minnesota, reveal a market in motion, driven by the interplay between federal funding and local rental conditions. The Fair Market Rent (FMR) for the area, set at $980 for fiscal year 2024, reflects the federal government's assessment of what is considered affordable for a two-bedroom apartment in the region. This figure is notably higher than the actual market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $757. This discrepancy suggests that landlords may have room to increase rents without exceeding affordability thresholds.
The median home value of $211,025 provides insight into the overall cost of homeownership in the area. However, the lack of specific data on price-cut share and days on market (DOM) makes it challenging to definitively state whether supply outpaces demand or vice versa. Nonetheless, the relatively lower market rent compared to the FMR indicates a potential for growth in rental prices, aligning with federal standards.
A key indicator of the market's trajectory is the 13.2% share of renters. In a small town setting, this percentage can signal long-term housing pressures. With fewer individuals choosing to rent, it suggests a preference for homeownership, potentially due to the availability of affordable homes or the desire for stable, long-term investments. This trend could imply a balanced market, where neither supply nor demand overwhelmingly dominates, but rather coexists in a way that supports both rental and ownership opportunities.
The absence of specific time-series data means we cannot track exact changes over time, but the current snapshot paints a picture of a market where federal support through the FMR is slightly ahead of actual market conditions. This positioning could attract more tenants looking for affordable housing options, thereby increasing demand and potentially leading to a more competitive rental environment.
In summary, ZIP 55771 presents a market where federal guidelines suggest room for rent increases, while the preference for homeownership among residents indicates a balanced approach to housing. Landlords and small-portfolio investors should consider these factors when evaluating investment opportunities in the area.
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.