Location: Iosco County, MI | Metro: Iosco 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 | $890 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 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 | $173,744 | 0.58% | F |
| 3BR | $1,410 | $227,009 | 0.62% | D |
| 4BR | $1,700 | $301,546 | 0.56% | F |
U.S. Census Bureau data (2024)
East Tawas, MI, located in ZIP code 48730, is a small coastal community with a total population of 4,584. The area reflects a blend of homeownership and rental living, with 24.7% of residents being renters. Median household income in the region stands at $49,823, indicating a modest economic environment where many families are likely seeking affordable housing options. The median home value is $192,503, which is relatively low compared to national averages, suggesting a predominantly middle-class residential setting.
The rent economics in East Tawas provide an interesting landscape for potential investors. The Fair Market Rent (FMR), set at $970 for the metro area in fiscal year 2026, significantly exceeds the current market rent of $628, as reported by the Census Bureau's American Community Survey (ACS). This discrepancy highlights a potential opportunity for investors who can leverage the higher FMR rates through participation in the Section 8 program, ensuring a steady and predictable income stream that surpasses typical market rents.
Given these conditions, ZIP 48730 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the consistent demand for affordable housing and the guaranteed income from the Section 8 program make it a reliable investment. Meanwhile, hands-on investors can capitalize on the gap between FMR and market rents by improving properties to command higher rents under the voucher program, thereby increasing their cash flow. Both strategies can be effective depending on the investor’s goals and risk tolerance.
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.