Location: Huron County, MI | Metro: Huron County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 48720, located in Huron County, MI metro, reveals key insights into its viability for Section 8 real-estate investment.
The rent math does not work favorably. The Fair Market Rent (FMR) for the area is set at $970 for fiscal year 2026. However, the current market rent, according to Census ACS data, is only $725. This discrepancy means that landlords may find it challenging to attract tenants willing to pay the higher FMR rate, especially when the actual market rate is significantly lower.
Acquisition costs are relatively low, with a median home value of $137,997. Despite this affordability, the lack of data on days on market (DOM) and the percentage of homes needing price cuts suggests that the market dynamics for property sales are unclear. Landlords should conduct further research to understand the local real estate market's responsiveness and adjust their acquisition strategies accordingly.
Tenant demand is limited in ZIP 48720. With a total population of 1,053, only 9.0% of residents are renters. This low renter share indicates a smaller pool of potential tenants, which could affect occupancy rates and the overall success of rental properties in this area.
Verdict: Investing in ZIP 48720 for Section 8 properties is not advisable due to unfavorable rent math and limited tenant demand. The gap between the FMR and market rent makes it difficult to attract tenants, while the small number of renters in the area poses additional challenges. Although the median home value is affordable, the lack of clarity around market responsiveness and the need for price adjustments adds uncertainty to the acquisition process.
Data Sources: FMR data from HUD (2027). 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.