Location: Aitkin County, MN | Metro: Duluth, MN-WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 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 |
U.S. Census Bureau data (2024)
The median income in ZIP code 55787 stands at $66,111, indicating that the average household has a limited budget for housing expenses. The current market rate for rent, according to Census ACS data, is $738 per month. This figure represents a significant portion of the median income, making it challenging for many households to afford market-rate rents without financial strain.
Comparatively, the Fair Market Rent (FMR) for ZIP 55787 in fiscal year 2024 is set at $1050, which is notably higher than the market rate. This discrepancy highlights the potential difficulty renters face in finding affordable housing that meets the voucher payment standard. Given that only 9.8% of the 621 population are renters, landlords must be prepared to compete for a relatively small pool of tenants.
The affordability gap between the median income and both the market rate and FMR suggests that landlords might struggle to find enough tenants willing to pay the higher voucher rates. However, accepting vouchers can still be a viable strategy due to the guaranteed payments and reduced risk of non-payment compared to cash-paying tenants. For landlords considering their options, it is crucial to weigh the benefits of stable income from voucher tenants against the potential for higher occupancy rates with cash-paying ones who may prefer lower rents.
In summary, while the voucher payment standard of $1050 exceeds the market rate of $738, landlords in ZIP 55787 should recognize the limited rental market and consider both the risks and rewards of accepting vouchers versus focusing on cash-paying tenants. Accepting vouchers can ensure steady income but may limit the number of available tenants, whereas cash-pay strategies could attract more renters but come with greater financial uncertainty.
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.