Location: Aitkin County, MN | Metro: Duluth, MN-WI MSA
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 55798 is situated in a tranquil suburban setting, characterized by a relatively small population of 627 residents. The area reflects a high standard of living, with a median household income of $78,438, placing it well above the national average. Only 11.8% of the residents are renters, indicating a predominantly owner-occupied community. The median home value stands at $238,049, which suggests a stable housing market with homes that are moderately priced compared to other suburban areas.
Moving into the economic landscape of rental properties, the Fair Market Rent (FMR) for ZIP 55798 as of fiscal year 2024 is set at $980. This figure contrasts sharply with the reported market rent of $675 based on Census ACS data. The discrepancy between the FMR and the actual market rent highlights an opportunity for landlords and investors who can leverage the higher reimbursement rates offered by the Section 8 program to enhance their profitability.
Given these conditions, ZIP 55798 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the potential for steady cash flow exists due to the guaranteed income from the Section 8 program, which exceeds the current market rent. This makes it a low-risk investment with minimal management overhead required. On the other hand, value-add buyers could find opportunities to improve properties and charge closer to the FMR, thereby increasing their rental income while still maintaining affordability for tenants through the Section 8 subsidy.
In summary, ZIP 55798 offers a balanced environment where the Section 8 program can be effectively utilized to either secure a passive income stream or to pursue active property improvements and management strategies. The combination of a modest population, high median income, and significant gap between FMR and market rent makes this ZIP code a viable option for both types of investors.
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.