Location: Alcona 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 | $720 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $206,662 | 0.66% | D |
U.S. Census Bureau data (2024)
The market in ZIP code 48742 is characterized by a steady trajectory, with key indicators providing insight into the current state of housing dynamics. The Fair Market Rent (FMR) for the area is set at $970 for fiscal year 2026, reflecting the government's benchmark for rental affordability. In contrast, the actual market rent, as reported by the Census Bureau's American Community Survey (ACS), stands at $732. This suggests that while there is an expectation for rents to rise, the current market is still below the projected FMR, indicating a potential for growth.
The median home value in the area is $176,806, which is a significant figure for understanding the overall cost of homeownership. However, the lack of data on the percentage of price-cut share and days on market (DOM) makes it difficult to definitively state whether supply outpaces demand or vice versa. Nonetheless, the gap between FMR and market rent implies that there could be upward pressure on rents as the market adjusts to meet the higher benchmark.
A noteworthy aspect of the ZIP code 48742 market is the 12.9% renter share. This relatively low percentage indicates that the majority of residents own their homes, but it also points to ongoing long-term housing pressure. As the population grows and changes, the demand for rental properties is likely to increase, putting additional strain on the housing market. Landlords and small-portfolio investors should prepare for a gradual shift towards higher demand for rentals, potentially leading to increased competition and higher rents as the market evolves.
The interplay between these figures—FMR, market rent, and renter share—suggests a market in flux. While the current rents are lower than the FMR, the low renter share hints at a latent demand that could emerge as economic conditions change or as the population structure shifts. For those looking to invest in this area, understanding these dynamics is crucial for making informed decisions about property acquisition and management strategies.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.