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 |
|---|---|---|---|---|
| 3BR | $1,530 | $142,374 | 1.07% | B |
U.S. Census Bureau data (2024)
The ZIP code 55782 is located in a suburban area of Minnesota, characterized by a modest population of 4,200 residents. Only 16.6% of these residents are renters, indicating a predominantly owner-occupied community. The median household income in this area stands at $56,420, reflecting a middle-class demographic. The median home value is notably lower at $123,711, suggesting an affordable housing market.
Turning to the rental economics, the Fair Market Rent (FMR) for ZIP 55782 in fiscal year 2024 is set at $980. However, the actual market rent, as reported by the Census Bureau's American Community Survey (ACS), is significantly lower at $588 per month. This discrepancy highlights a potential opportunity for landlords and investors, as the FMR provides a benchmark that could support higher rents under Section 8 contracts.
Given these conditions, ZIP 55782 might appeal more to a hands-on value-add buyer rather than a hands-off voucher operator. The lower median home values and market rents present an opportunity for those willing to invest in property improvements to attract tenants paying closer to the FMR. For a hands-off operator, the limited number of renters and the low market rents could make it challenging to find sufficient demand for Section 8 units. Conversely, a hands-on approach can leverage the FMR to justify higher rents and potentially higher returns, especially if the investor targets properties where they can add value through renovations or upgrades.
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.