Location: Duluth, MN | Metro: Duluth, MN-WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 55780 within the Duluth, MN-WI MSA reveals several key insights for landlords and small-portfolio investors.
The rent math does not work favorably. The Fair Market Rent (FMR) for ZIP 55780 in fiscal year 2024 is set at $1140, while the market rent based on Census ACS data is only $800. This discrepancy means that landlords may struggle to cover costs and maintain profitability if they rely solely on the market rate.
Acquisition in this area is challenging due to limited data. The median home value is listed as N/A, indicating that there might be insufficient sales data to determine an accurate median. Additionally, the days on market (DOM) and the percentage of homes that have been subject to price cuts are also marked as N/A, suggesting that there could be a lack of recent transactions or activity in the housing market.
Tenant demand is relatively low. With a total population of 277, only 15.7% are renters. This translates to approximately 44 potential tenants, which is a small pool considering the size of the area. Landlords should carefully assess the local rental market before making investment decisions.
In conclusion, ZIP 55780 presents a challenging environment for real estate investment. The disparity between the FMR and the actual market rent suggests a need for careful financial planning to ensure profitability. Limited data on home values and market conditions indicate a potentially inactive housing market, complicating acquisition strategies. Lastly, the low number of renters points to a smaller tenant base, which may impact occupancy rates and long-term sustainability of rental properties.
Data Sources: FMR data from HUD (2027). 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.