Location: Duluth, MN | Metro: Duluth, MN-WI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
The Section 8 housing market in ZIP code 55816, located in Duluth County, Minnesota, is defined by the Federal Housing Administration's Fair Market Rent (FMR) of $1120 for the fiscal year 2024. This figure represents the maximum amount that voucher holders can pay towards their monthly rent under the Section 8 program. However, the comparison against the local market rent is currently unavailable due to insufficient data.
To determine whether voucher tenants cashflow at the FMR rate, marginally, or only with premium units, we need to consider the typical rental rates in the area. Given the lack of specific market rent data, it's challenging to make a precise assessment. But, based on the FMR alone, landlords should be prepared for a scenario where they might only break even or marginally profit with standard units unless they manage to secure higher rents through premium offerings or negotiate with the local housing authority.
The median home value in ZIP 55816 is also not available, which makes deriving an accurate rent-to-price ratio difficult. The rent-to-price ratio is crucial for understanding the overall real estate market dynamics, including whether renting or buying is more advantageous. Without this information, it's hard to provide a comprehensive view on how the rental market compares to homeownership.
The Days on Market (DOM) and the percentage of price cuts are also not provided. These metrics would typically help gauge the speed at which properties are rented and the flexibility required in pricing to attract tenants. In the absence of such data, it's important to note that the stability of the rental market could still be a significant factor for investors, especially those looking for consistent cash flow.
The strongest angle for Section 8 investors in ZIP 55816 appears to be stability. With a fixed FMR rate, landlords can rely on steady income from voucher holders, ensuring predictable cash flow over time. This predictability is particularly valuable in a market where other economic indicators are unclear.
Data Sources: FMR data from HUD (2027).
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.