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 | $920 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $940 | $114,966 | 0.82% | C |
| 2BR | $1,040 | $165,892 | 0.63% | D |
| 3BR | $1,440 | $171,321 | 0.84% | C |
| 4BR | $1,740 | $224,883 | 0.77% | D |
U.S. Census Bureau data (2024)
The ZIP code 48750, located in Oscoda, MI, presents a unique balance between yield and stability that leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The key figures to consider here are the Fair Market Rent (FMR), which stands at $1,010 for the metro area in fiscal year 2026, while the market rent is lower at $720. This discrepancy suggests that there is potential for rental income above the local market rate, but it's not so extreme as to indicate a volatile market.
The median home value of $149,638 is relatively low, indicating that property acquisition costs are manageable. However, the stability indicators paint a more nuanced picture. With only 20.1% of the population being renters, the demand for rental properties is limited. Additionally, the average daily days on market (DOM) data is not available, which could imply either a very stable market where homes are quickly rented or a less active market with fewer transactions.
The median household income of $45,561 provides insight into the economic conditions of the area. This figure is modest and might suggest that tenants have limited financial flexibility, making them more sensitive to rent increases. Therefore, landlords should be cautious about pricing their rentals too high, as it could deter potential tenants.
In conclusion, ZIP 48750 offers a moderate yield opportunity due to the higher FMR compared to the market rent, but the low percentage of renters and modest income levels indicate a need for careful management to maintain steady cash flow. It is not advisable to pursue aggressive flipping strategies in this market, as the conditions do not support high-risk, high-reward approaches.
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.