Location: Isabella County, MI | Metro: Gratiot 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 | $800 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $132,952 | 0.77% | D |
| 3BR | $1,350 | $183,725 | 0.73% | D |
| 4BR | $1,460 | $229,073 | 0.64% | D |
U.S. Census Bureau data (2024)
ZIP 48801, located in Alma, MI, within Isabella County's metro area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, while the current market rent stands at $838. This creates a positive spread of $132 per unit, ensuring that landlords can maintain steady cash flow even if the local market experiences downturns.
The median home value in ZIP 48801 is $162,415, which is relatively low compared to many other areas across the United States. This makes it an ideal location for investors looking to minimize their initial capital outlay while still benefiting from government-backed rental income. The guaranteed rent through the Section 8 program provides a reliable source of income, which is crucial for maintaining a stable portfolio.
Additionally, the ZIP code has a renter share of 25.0%, indicating a moderate demand for rental properties. While this might not be the highest percentage, it ensures that there is a consistent pool of tenants who can afford the subsidized rents. The median income of $58,750 further supports the viability of Section 8 housing, as it aligns well with the income limits required for eligibility into the program.
A key consideration for landlords is the price-cut share, which is reported at 0.2%. This low figure suggests that very few landlords in the area are willing to reduce their asking rents, implying strong competition among tenants for available units. Since Section 8 rents are already set below market rates, this factor does not significantly impact the attractiveness of the ZIP code as a cash-flow anchor.
In conclusion, ZIP 48801 is best suited as a cash-flow anchor within a Section 8 portfolio due to the favorable spread between FMR and market rents, the low median home value, and the moderate renter share. These factors combine to offer a secure and predictable investment opportunity for landlords and small-portfolio investors.
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.