Location: Osceola County, MI | Metro: Clare 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 | $790 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $154,649 | 0.68% | D |
| 3BR | $1,280 | $220,251 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 48632 in Lake, MI, has a population of 5,268 residents, with 8.1% being renters. This indicates that it is not a renter-heavy area but rather one dominated by homeowners. The median household income stands at $57,036, which provides a baseline for assessing the financial capacity of potential tenants.
Given the market rent of $907, we can calculate that the typical rent consumes approximately 16% of the local median income. This figure is derived by dividing the monthly rent by the annual median income and multiplying by 12. To put this into perspective, the Fair Market Rent (FMR) for the metro area, set at $980 for FY 2026, suggests that rents in 48632 are slightly below the average expected in the broader region. However, both the market rent and FMR remain within a reasonable range relative to the median income, indicating that the area supports affordable housing options.
The scarcity of vouchers in 48632 means that landlords should expect tenants who are capable of paying their own rent without relying on government assistance. While some tenants may still qualify for Section 8 vouchers, the overall demand for such assistance is lower due to the higher proportion of homeowners and the relatively low cost of living compared to the FMR. Landlords should prepare for a tenant pool that is financially stable and can afford rent that represents about one-sixth of their income, which is a healthy ratio for sustainable tenancy.
In summary, ZIP 48632 is best suited for landlords and small-portfolio investors looking for areas with fewer voucher-dependent tenants and a higher percentage of homeowners. The expected tenant profile will likely consist of individuals who can afford to pay market rates, making this a less risky investment compared to areas with deeper voucher demand. The current rental environment, where rent consumes 16% of the median income, aligns well with the broader economic conditions of the region, offering a balanced opportunity for both landlords and tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.