Location: Roscommon County, MI | Metro: Roscommon 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 | $740 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $164,754 | 0.63% | D |
| 3BR | $1,260 | $259,807 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 48651, located in Prudenville, Michigan, within the Roscommon County metro area, reveals several key points that are crucial for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,010. However, the current market rent, according to the Census ACS, stands at $822. This indicates that landlords would need to either adjust their expectations or find ways to increase the value proposition of their properties to justify rents closer to the FMR. At present, the market suggests a lower rent point, which could affect profitability if not managed properly.
Secondly, regarding the affordability of property acquisition, the median home value in ZIP 48651 is $187,853. Given the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.1%), it can be inferred that the market is relatively stable. Homes are likely selling close to their asking price, suggesting that the acquisition cost is predictable and manageable for investors. However, without specific DOM data, it's challenging to gauge the speed at which an investment might turn into a rental asset.
Lastly, there is a consideration of tenant demand. With a population of 4,364 and a renter share of 24.2%, the potential tenant pool is approximately 1,057 individuals. This figure provides a baseline for understanding how many units could potentially be filled in the area. While the number is not large, it does indicate a steady demand for rentals, especially considering the relatively low median home value which might suggest a significant portion of the population is renters due to affordability.
Verdict: The rent math in ZIP 48651 currently does not align with the FMR goal, indicating a need for strategic adjustments. Property acquisition is affordable with a stable median home value, though the absence of DOM data introduces some uncertainty. Tenant demand is modest but consistent, supporting a limited portfolio of rental properties. Overall, while the market presents challenges, particularly with rent pricing, it also offers opportunities for careful, informed investments.
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.