Location: Bay City, 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 | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,380 | $214,524 | 0.64% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 48732, part of the Bay City, MI MSA, reveals a mixed picture for landlords and small-portfolio investors. The first question to address is whether the rent math works. The Fair Market Rent (FMR) for ZIP 48732 in fiscal year 2024 is set at $910, whereas the market rent, measured by the Zillow Observed Rental Index (ZORI), stands at $1,028. This indicates that landlords can potentially charge a premium over the FMR, but they must also consider the competition and the willingness of tenants to pay above the subsidized rate.
Moving on to the affordability of acquisition, the median home value in ZIP 48732 is $201,639. With no available data on days on market (DOM) and a negligible 0.2% price-cut share, it suggests that homes in this area are generally selling quickly without significant price reductions. However, the median home value does not necessarily reflect the cost of rental properties, which could be lower. Landlords should conduct further research to determine if rental property acquisitions are indeed affordable.
The third point concerns tenant demand. ZIP 48732 has a population of 11,340, with 31.6% of residents being renters. This implies a steady demand for rental units, given the sizable proportion of renters. For landlords, this translates into a reliable pool of potential tenants who are actively seeking housing.
Verdict: In ZIP 48732, the rent math leans slightly towards favoring market rents over the FMR, indicating potential for higher income. Acquisition costs appear reasonable with the median home value at $201,639, though specific rental property pricing should be verified. Tenant demand is robust, with a significant portion of the population renting. Overall, ZIP 48732 presents a viable opportunity for landlords and small-portfolio investors looking to enter or expand in the Bay City, MI MSA market.
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.