Location: Gladwin County, MI | Metro: Bay City, MI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
U.S. Census Bureau data (2024)
To classify ZIP code 48613, we must analyze both the yield potential and the stability factors based on the given data points.
The yield is determined by comparing the Fair Market Rent (FMR) with the market rent and the home value. For ZIP 48613, the FMR for the fiscal year 2024 is set at $1070, while the market rent stands at $900. This indicates that there is a discrepancy between the government's benchmark for rental pricing and what the local market is currently offering. The home value in this area is significantly higher at $199,199, which suggests that properties here are more expensive relative to the rental income they generate. Given these figures, the yield potential leans towards being moderate, as the FMR does not substantially exceed the market rent, and the property values are relatively high.
Moving on to stability, the percentage of renters in the area is quite low at 5.7%, which could imply a less stable rental market due to fewer tenants. However, the median household income is reported at $58,846, indicating that residents have a decent level of financial security. The lack of data on days on market (DOM) makes it challenging to assess how quickly properties can be rented out, but the income figure suggests that tenants who do occupy units are likely to be financially stable and able to pay rent consistently.
Based on these metrics, ZIP 48613 would be classified as a steady-cashflow zone rather than a high-yield/low-stability market. The relatively close alignment between the FMR and market rent, combined with the moderate income levels, supports this classification. While the yield isn't exceptionally high, the financial stability of the tenants, as indicated by the median income, suggests a reliable source of cash flow for landlords and small-portfolio investors.
To summarize, the key figures driving this assessment are the $1070 FMR compared to the $900 market rent, the $199,199 home value, and the $58,846 median income. These numbers indicate a balanced market where investors can expect consistent returns without the volatility associated with high-yield markets.
Data Sources: FMR data from HUD (2027). 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.