Location: Roscommon County, MI | Metro: Roscommon County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
A skeptical investor analyzing ZIP code 48627 might raise several concerns regarding the feasibility of renting out properties under the Section 8 program. These objections can be directly addressed using the available data.
First objection: "Will FMR $1,010 (metro FY 2026) cover the mortgage on a $254,223 home?"
The Fair Market Rent (FMR) for ZIP 48627 is set at $1,010 per month for FY 2026. To determine if this will cover the mortgage, we need to calculate the monthly mortgage payment. Assuming a 30-year fixed-rate mortgage with an interest rate of 4%, the monthly mortgage payment for a $254,223 home would be approximately $1,230. This means that the FMR of $1,010 does not fully cover the mortgage payment, leaving a shortfall of $220 per month. Landlords must factor this into their investment strategy, potentially relying on other income sources or considering the long-term appreciation of property values.
Second objection: "Is there enough renter demand at 0.0%?"
The data indicates that the renter demand in ZIP 48627 is at 0.0%. This figure suggests a lack of sufficient rental activity, which could be concerning for potential landlords. However, it's important to consider that this percentage may reflect a very small sample size or an unusual statistical anomaly. To gain a clearer picture, additional research into local rental trends and vacancy rates would be necessary. It's also worth noting that the demand for Section 8 rentals might differ from the general rental market due to the unique requirements and benefits of participating in the program.
Third objection: "Will vouchers keep pace with N/A market rents?"
The data provided does not specify the current market rents for ZIP 48627, marked as N/A. Without this information, it's challenging to assess whether voucher amounts will match the actual rental market. The Section 8 program aims to ensure that voucher amounts reflect the local housing market conditions, but the absence of specific market rent data makes it impossible to definitively state if the FMR of $1,010 will align with future market conditions. Landlords should monitor changes in both FMRs and local market rents to make informed decisions.
In summary, while the FMR of $1,010 does not fully cover the mortgage on a $254,223 home, the low renter demand and uncertain market rent data present challenges. Careful financial planning and ongoing market analysis are crucial for landlords and small-portfolio investors considering participation in the Section 8 program in ZIP 48627.
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.