Location: Iosco County, MI | Metro: Alcona 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 | $880 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $236,571 | 0.51% | F |
| 3BR | $1,620 | $286,373 | 0.57% | F |
U.S. Census Bureau data (2024)
ZIP 48738, located in Greenbush, MI, within the Iosco County, MI metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,020, which is $70 higher than the current market rent of $950. This spread ensures that properties in ZIP 48738 will generate consistent positive cash flow above market rates when rented through the Section 8 program.
The median home value in the area stands at $232,914. Given the FMR advantage, landlords can expect to cover mortgage payments, maintenance costs, and other expenses while still maintaining a healthy profit margin. The guaranteed rent through the Section 8 program provides stability and reduces the risk associated with vacancy or non-payment.
While there is no specific percentage given for the price-cut share or days on market (DOM), the lack of volatility in pricing and rental markets suggests that this area is stable and unlikely to see significant price fluctuations. This further supports the idea of using ZIP 48738 as a cash-flow anchor rather than an appreciation play.
The renter share in ZIP 48738 is 13.8%, indicating a moderate demand for rental properties. With a median income of $63,462, tenants are likely to be financially stable and capable of meeting the requirements of the Section 8 program. However, this factor does not outweigh the clear benefits of the FMR over market rent, which is the primary driver for considering this ZIP code as a cash-flow anchor.
In conclusion, ZIP 48738 is best suited as a cash-flow anchor due to the $70 spread between the FMR and market rent, ensuring steady and reliable income for landlords participating in the Section 8 program. The stability of the local housing market and the financial capability of potential tenants further solidify this position.
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.