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 |
|---|---|---|---|---|
| 1BR | $890 | $89,202 | 1% | C |
| 2BR | $1,110 | $125,857 | 0.88% | C |
| 3BR | $1,530 | $162,574 | 0.94% | C |
| 4BR | $1,870 | $179,011 | 1.04% | B |
| 5BR | $2,169 | $189,581 | 1.14% | B |
U.S. Census Bureau data (2024)
The ZIP code 55792, located in Virginia, MN, presents a challenging landscape for renters given the local economic conditions and housing costs. The median household income in this area stands at $53,750. Comparatively, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $870 per month. This means that a significant portion of a household’s income would need to be allocated towards rent alone, making it difficult for many residents to find affordable housing.
Further complicating the situation is the Fair Market Rent (FMR) standard for voucher payments, which is set at $980 for the fiscal year 2024. This figure is higher than the market rate but still represents a substantial cost for families relying on vouchers. Given that 37.5% of the 9,663 population are renters, the competition among landlords is likely to be fierce, especially for those who can offer units at or below the ZORI rate. However, landlords who are willing to accept voucher payments could see an influx of tenants who prefer the stability and predictability that vouchers provide.
The affordability gap in Virginia, MN, is stark. A household earning the median income would struggle to pay the ZORI rate without financial strain, let alone the higher FMR rate. For landlords, this means that accepting voucher payments might be a viable strategy to ensure steady occupancy and a reliable source of income. Vouchers can cover a larger portion of the rent compared to what many local renters can afford out-of-pocket. Moreover, voucher holders often have fewer issues with late payments and are less likely to move frequently due to the security of their housing subsidy.
In summary, landlords in ZIP 55792 should consider the economic realities faced by local renters. Accepting voucher payments can be a strategic choice to attract tenants and maintain stable rental income. While the initial setup and compliance with voucher programs may require additional effort, the long-term benefits in terms of tenant reliability and reduced vacancy rates make it a compelling option for landlords in this market.
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.