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 | $1,260 |
| 1 Bedroom | $1,440 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,510 |
| 4 Bedrooms | $3,030 |
| 5 Bedrooms | $3,515 |
| 6 Bedrooms | $3,937 |
| 7 Bedrooms | $4,252 |
| 8 Bedrooms | $4,465 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,810 | $310,306 | 0.58% | F |
| 3BR | $2,510 | $391,173 | 0.64% | D |
| 4BR | $3,030 | $478,578 | 0.63% | D |
U.S. Census Bureau data (2024)
Saginaw, MN, specifically ZIP code 55779, is a modest-sized community with a total population of 3,905 residents. Only 14.0% of these residents are renters, indicating a predominantly owner-occupied area. The median household income in this zip code stands at a robust $93,792, suggesting a relatively affluent community. Furthermore, the median home value in Saginaw, MN is $335,682, reflecting the high quality and desirability of the housing stock.
The rental market dynamics in ZIP 55779 are particularly interesting. According to the latest Fair Market Rent (FMR) data for the fiscal year 2024, the FMR is set at $1,670. This figure represents the maximum amount a landlord can charge for a Section 8 voucher. In contrast, the Census Bureau's American Community Survey (ACS) reports the average market rent at $1,708. This means that landlords participating in the Section 8 program will see a slight decrease in potential rental income compared to market rates.
Given the characteristics of ZIP 55779, it is best suited for hands-on value-add buyers rather than hands-off operators. The relatively low percentage of renters and the high median income suggest that there is room for improvement and strategic investment in rental properties. By focusing on enhancing property values and ensuring compliance with Section 8 requirements, an active investor can create a portfolio that appeals to both voucher recipients and market-rate tenants, maximizing the potential for rental income and property appreciation. The slight disparity between the FMR and market rent also indicates that there is a margin for efficiency and optimization, making it a viable option for those willing to engage deeply with the local rental market.
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.