Location: Tuscola County, 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 | $770 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $231,656 | 0.62% | D |
| 4BR | $1,610 | $248,143 | 0.65% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 48757 reveals a unique balance between yield and stability that does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. The key figures to consider are the Fair Market Rent (FMR) of $910, which matches the market rent at $910, and the median home value of $214,556. This parity between FMR and market rent suggests a stable rental environment where landlords can expect consistent returns without significant fluctuations.
On the yield axis, the FMR of $910 aligns with the expected market rent, indicating that properties in this area will generate rental income at par with what the government deems fair. Given the median home value of $214,556, the rental yield is relatively modest but still competitive within the local market. To calculate the yield, we can use the annual rent ($910 * 12 months = $10,920) divided by the median home value, resulting in an approximate yield of 5.1%.
Regarding stability, the 13.3% of renters in the area signals a smaller but steady demand for rental properties. The lack of data on days on market (DOM) makes it difficult to assess how quickly properties might be rented out, but the average household income of $73,832 suggests that tenants have a reasonable ability to pay rent consistently.
While the area does not present itself as a high-risk/high-reward scenario typical of flip-style markets, nor does it offer the high stability and guaranteed cash flow associated with steady-cashflow zones, it falls into a category of moderate stability and yield. Landlords and small-portfolio investors should find this ZIP code suitable for long-term investments, particularly if they aim for a balanced approach between generating rental income and maintaining property values.
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.