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 | $1,050 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $292,166 | 0.52% | F |
| 3BR | $2,090 | $330,109 | 0.63% | D |
| 4BR | $2,520 | $385,176 | 0.65% | D |
| 5BR | $2,923 | $485,801 | 0.6% | D |
U.S. Census Bureau data (2024)
Duluth, MN, represented by ZIP code 55812, is a significant rental market with a population of 10,859. Over half of the residents, 57.4%, are renters, indicating a robust demand for rental properties. This high percentage of renters suggests that there is a substantial pool of potential tenants who may rely on housing vouchers such as those provided through the Section 8 program.
The median household income in this ZIP is $65,505, which provides a useful benchmark for assessing the affordability of housing. The typical market rent of $1,629 represents approximately 25% of the median income. This ratio indicates that while rents are not excessively high, they do consume a considerable portion of the average household's earnings.
Comparing the market rent to the Fair Market Rent (FMR) of $1,220 for fiscal year 2024 shows that the market rent exceeds the FMR by about $409. This discrepancy means that landlords in Duluth may face challenges in finding tenants whose voucher amounts fully cover the cost of renting at market rates. However, the higher market rent also suggests that there could be a mix of voucher-supported and non-voucher-supported tenants, depending on individual circumstances and additional sources of income.
A landlord in this area should expect a diverse tenant profile. Many tenants will likely have a combination of income and voucher support to meet their housing needs. Given the high percentage of renters, there is a strong likelihood of encountering tenants who are part of the Section 8 program, seeking affordable housing options. While these tenants will require some attention to ensure that their total income plus voucher amount can cover the rent, the overall rental environment is favorable for landlords looking to attract a steady stream of tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.