Location: Isabella County, MI | Metro: Clare County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $790 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
ZIP 48622, located in Farwell, MI, within the Isabella County, MI metro area, serves as a solid cash-flow anchor for a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) set at $1,040 for the fiscal year 2026 and the current market rent of $761. The difference allows landlords to secure higher rental income through Section 8 vouchers compared to what they might receive from private market tenants.
The median home value in ZIP 48622 stands at $199,723. While this figure is relatively stable, the primary focus for Section 8 landlords should be on the rental income rather than the appreciation potential of the property values. In this case, the price-cut share and days on market (DOM) are not applicable as indicators of appreciation, since Section 8 properties are primarily valued for their guaranteed rental income rather than speculative gains in property value.
ZIP 48622 also offers diversification benefits within a Section 8 portfolio. With a renter share of 11.1%, there is a notable presence of renters who could potentially benefit from Section 8 housing assistance. Additionally, the median income of $56,804 suggests that there is a sufficient number of residents who would qualify for the program, ensuring a steady demand for subsidized housing units.
In conclusion, ZIP 48622 is best suited as a cash-flow anchor due to the substantial difference between the FMR and market rent, which guarantees landlords a higher, more predictable income stream. This makes it an ideal choice for landlords and small-portfolio investors looking to stabilize their financial performance while providing affordable housing options to those in need.
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.