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 | $830 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $204,924 | 0.58% | F |
| 3BR | $1,650 | $262,946 | 0.63% | D |
| 4BR | $1,990 | $292,921 | 0.68% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 55808, located in Duluth, MN, reveals that the Federal Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) for fiscal year 2024 is $1070. This compares favorably to the market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $988. Given these figures, landlords can expect to achieve positive cash flow with Section 8 tenants, as the FMR exceeds the average market rent.
To further analyze the investment potential, the median home value in ZIP 55808 is $210,855. The rent-to-price ratio, derived from the median home value and the FMR, indicates that rental income is relatively high compared to property values. This suggests that rental properties may offer a stronger investment return relative to purchasing a home in the area.
However, it's important to note that the data does not provide information on the median Days on Market (DOM) or the percentage of homes that have experienced price cuts. These metrics would be useful in understanding the broader housing market dynamics, such as how quickly properties sell and the level of competition among sellers. Without this data, we cannot make a definitive statement on the impact of rent-versus-buy dynamics on the local real estate market.
In conclusion, for Section 8 investors, ZIP 55808 presents a strong opportunity for positive cash flow given the favorable rent-to-price ratio and the fact that FMR exceeds market rent. The most compelling angle for investors in this region is likely cash flow, due to the higher rental rates supported by the FMR compared to the general market rent.
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.