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 | $780 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,550 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,120 | $208,847 | 0.54% | F |
| 3BR | $1,550 | $222,910 | 0.7% | D |
| 4BR | $1,870 | $256,411 | 0.73% | D |
U.S. Census Bureau data (2024)
Duluth, MN, represented by ZIP code 55806, stands out in Saint Louis County due to several key demographics. With a population of 9,356 residents, it has a notable rental rate of 57.9%, indicating a significant portion of the community relies on rented properties. The median income here is $42,833, which is relatively modest compared to other areas, yet the median home value is robust at $204,495, reflecting a strong housing market.
The voucher economics in ZIP 55806 present an interesting opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $1,060 for the fiscal year 2024, is notably lower than the market rent, measured at $1,232 according to ZORI (Zillow Observed Rent Index). This discrepancy means that landlords can still attract tenants using Section 8 vouchers while potentially earning above the voucher limit through market rates.
Evaluating the data signature of ZIP 55806, it reads as stable. The high percentage of renters coupled with a solid median home value suggests a consistent demand for rental properties. While the income level is moderate, the difference between FMR and market rent indicates a healthy balance where landlords can benefit from both voucher and non-voucher tenants without significant risk. This stability provides a reliable environment for investment, ensuring steady returns for those willing to engage with the Section 8 program.
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.