Location: Arenac County, MI | Metro: Arenac 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 | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 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 | $169,213 | 0.6% | F |
| 3BR | $1,360 | $240,845 | 0.56% | F |
U.S. Census Bureau data (2024)
The ZIP code 48703, located in Au Gres, MI, within the Arenac County, MI metro, has a Federal Market Rent (FMR) of $970 for fiscal year 2026. This FMR is higher than the market rent of $665, indicating that federally subsidized housing rents are set above what the local market typically offers. The median home value in 48703 stands at $143,160, which is likely below the average for the entire county, suggesting that this area might be considered a value pocket within its metro.
A value pocket implies that while the area may offer lower property values compared to surrounding regions, it still provides a decent living standard for renters. With an FMR exceeding the market rent, landlords in 48703 could benefit from receiving higher rent payments through federal assistance programs, even if the overall market rent is lower.
The 12.2% renter share in 48703 is notable. While this figure is not extraordinarily high, it does suggest a significant portion of the population relies on rental housing. Coupled with the below-average home value and higher FMR, this indicates that 48703 could be a favorable location for landlords participating in Section 8 programs. The presence of a higher renter share with relatively lower home values often signals a sweet spot for such programs, where the need for affordable housing meets the opportunity for landlords to secure stable tenants through government subsidies.
To further assess the classification of 48703 within the Arenac County metro, we would need comparative data on other ZIP codes' FMRs, market rents, home values, and renter shares. However, based on the given figures, it appears that 48703 is positioned as a value pocket, offering opportunities for both affordability and stability for small-portfolio investors and landlords.
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.