Location: Oscoda 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 | $790 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $140,696 | 0.75% | D |
| 3BR | $1,400 | $226,290 | 0.62% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,030 for ZIP 48761 (South Branch, MI) can adequately cover the mortgage on a home priced at $128,526. To evaluate this, consider the typical mortgage payments based on current interest rates. Assuming a 30-year fixed-rate mortgage at an average rate of around 5%, the monthly payment on a $128,526 home would be approximately $670, which includes principal and interest. Property taxes and insurance would add to this figure, but even so, the total mortgage payment would likely remain well below the $1,030 FMR.
The next concern could be the relatively low percentage of renters at 12.9%. This figure suggests that the majority of residents in South Branch prefer homeownership over renting. However, this does not necessarily mean that rental demand is weak. It simply indicates that the area has a strong homeownership culture. For small-portfolio investors, targeting specific niches such as first-time renters or those who prefer lower maintenance living might still yield a viable investment opportunity. Moreover, the presence of any local institutions or businesses that attract transient populations could bolster the demand for rentals.
Lastly, an investor might wonder if voucher holders will keep pace with market rents given that the data shows the market rents as N/A. The lack of specific market rent data complicates this analysis. However, it's important to note that voucher amounts are adjusted periodically to reflect changes in the housing market. The HUD adjusts the Housing Choice Voucher (Section 8) payment standards annually to match the prevailing market conditions. Therefore, while we cannot provide a direct comparison without the market rent figures, the system is designed to ensure that voucher amounts do not fall significantly behind market trends.
In summary, the FMR of $1,030 can comfortably cover the mortgage on a home valued at $128,526. Despite the low renter percentage, targeted marketing strategies can still find a suitable tenant base. Lastly, although market rent data is unavailable, the periodic adjustments of voucher amounts should align with the local economic reality.
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.