Location: Ogemaw County, MI | Metro: Bay City, MI MSA
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 | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $204,465 | 0.7% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 48659, located in Ogemaw County, MI, reveals several key insights for potential landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 48659 in fiscal year 2024 is set at $940. However, the current market rent based on Census ACS data stands at $853. This indicates that landlords may find it challenging to charge the FMR due to lower prevailing market rates, suggesting a potential misalignment between government-set rents and actual market conditions.
Regarding the affordability of acquisitions, the median home value in ZIP 48659 is $169,940. Unfortunately, the data for days on the market (DOM) and the percentage of homes with price cuts is not available. Despite this lack of specificity, the median home value suggests that acquiring properties in this area is relatively affordable compared to other regions in Michigan.
The third question concerns tenant demand. ZIP 48659 has a total population of 2,563, with 11.1% being renters. This low percentage of renters implies limited demand for rental properties, which could make it difficult to fill units and maintain consistent occupancy levels.
Verdict: While the acquisition cost in ZIP 48659 is affordable, the current market rent is below the FMR, indicating potential difficulties in pricing properties competitively. Furthermore, the low renter share suggests that tenant demand is insufficient to support a robust rental market. Landlords and small-portfolio investors should proceed with caution, considering these factors before making any investment decisions in 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.