Location: Gratiot County, MI | Metro: Saginaw, MI 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 | $880 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,620 | $236,005 | 0.69% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 48614 reveals a unique balance between yield potential and market stability, making it an interesting investment opportunity for landlords and small-portfolio investors.
Starting with yield, the Fair Market Rent (FMR) for ZIP 48614 in fiscal year 2024 is set at $1,050. This is slightly above the current market rent of $1,039, indicating a positive outlook for rental income. However, when compared to the median home value of $210,592, the FMR suggests a modest yield. The FMR represents approximately 6.1% of the median home value per month, which is calculated by dividing the annualized FMR ($12,600) by the median home value ($210,592).
Moving on to stability, the ZIP code has a relatively low percentage of renters at 7.9%. This figure implies that the majority of residents are homeowners, which can contribute to a stable community environment. However, the lack of data on days on market (DOM) for rentals indicates uncertainty about how quickly properties might be rented out. The median household income of $63,393 provides some insight into the economic stability of the area, suggesting that there is a reasonable level of financial security among the population.
Based on these figures, ZIP 48614 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The slight premium in FMR over market rent and the modest rental yields suggest that while returns are positive, they are not exceptionally high. The low percentage of renters and the absence of day DOM data point towards a market that prioritizes stability and predictability over rapid turnover and high yields.
To conclude, the combination of a moderate rental yield and the available indicators of stability makes ZIP 48614 suitable for investors seeking reliable cash flow rather than quick flips or high-risk, high-reward investments.
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.