Location: Ogemaw County, MI | Metro: Arenac County, MI
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 | $870 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $148,544 | 0.83% | C |
| 3BR | $1,570 | $203,947 | 0.77% | D |
U.S. Census Bureau data (2024)
The Alger, MI, Arenac County, and Ogemaw County metro area, represented by ZIP code 48610, presents a unique opportunity for Section 8 investors. The HUD Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,160. This figure is significantly higher than the average market rent of $781, based on recent Census American Community Survey (ACS) data. Given this disparity, landlords can expect to see positive cash flow when renting to voucher tenants at the HUD FMR rate. In fact, even with typical operating expenses, properties rented at $1,160 would likely generate substantial cash flow, especially compared to the lower market rents.
To further analyze the investment potential, consider the median home value in the area, which stands at $152,964. Using the HUD FMR of $1,160, we can derive a rent-to-price ratio of approximately 0.82%. This ratio suggests that rental income could be a strong component of overall property value, making it attractive for investors looking to capitalize on both rental income and potential property appreciation.
Note that the median Days on Market (DOM) and percentage of price cuts are not available for this area. However, given the significant gap between the HUD FMR and the market rent, it's clear that the rent-vs-buy dynamics favor rental investments, particularly those that can leverage the higher voucher rates.
The strongest investor angle in the Alger, MI, metro area is cash flow. Properties that can secure Section 8 tenants at the HUD FMR rate will likely outperform those rented at the local market rate, providing a stable and lucrative income stream for landlords and small-portfolio investors.
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.