Location: Roscommon County, MI | Metro: Missaukee 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 | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $164,187 | 0.62% | D |
| 3BR | $1,230 | $242,300 | 0.51% | F |
| 4BR | $1,700 | $338,487 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 48629, located in Houghton Lake, Michigan, can serve as a diversifier within a Section 8 portfolio strategy. The median home value in this area is $193,833, indicating that it is relatively affordable compared to the national average. However, the Fair Market Rent (FMR) for the region is set at $970 for FY 2026, which is higher than the market rent of $828, creating a spread of $142 per month.
This spread suggests that landlords in ZIP 48629 can potentially receive above-market rents through Section 8 vouchers, making it a valuable addition to a diversified portfolio. The median income in the area is $56,520, which aligns well with the eligibility criteria for Section 8 assistance, further supporting the viability of this strategy.
Additionally, with a 15.6% renter share, there is a significant portion of the population relying on rental housing, which can be leveraged to stabilize cash flow. While the area shows a low 0.1% price-cut share and N/A-day Days on Market (DOM), these factors suggest a stable but not rapidly appreciating market. Therefore, focusing on diversification rather than appreciation plays is advisable for this ZIP code.
In conclusion, ZIP 48629 is best suited as a diversifier in a Section 8 portfolio strategy due to its affordable median home value, favorable rent spread, and substantial renter share. This approach ensures a balanced portfolio that benefits from the stability and potential above-market rents offered by this area.
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.