Location: Lenawee County, MI | Metro: Ann Arbor, 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 | $1,230 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $251,140 | 0.6% | F |
| 3BR | $1,790 | $318,943 | 0.56% | F |
| 4BR | $1,980 | $407,717 | 0.49% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 49287, located in Lenawee County, Michigan, reveals several key insights for landlords and small-portfolio investors.
The rent math does not work favorably. The Fair Market Rent (FMR) for ZIP 49287 in fiscal year 2024 is set at $1250, which is significantly higher than the market rent reported by the Census ACS at $757. This discrepancy indicates that landlords may struggle to charge rents at the FMR level, given the current market conditions.
Acquisition appears to be moderately affordable. The median home value stands at $304,523, which is within reach for many investors. However, the lack of data on days on market (DOM) and the percentage of homes that require a price cut to sell suggests that the market might be less liquid or competitive, potentially impacting the ease of acquiring properties.
Tenant demand is limited in this area. With a total population of 1,958 and only 9.8% of residents being renters, landlords would face a relatively small pool of potential tenants. This could make it challenging to find and retain tenants, especially if the rental rates do not align with the market's expectations.
In summary, ZIP 49287 presents a scenario where the rent math is unfavorable due to the significant gap between FMR and actual market rent. Acquisition is possible but without clear data on market liquidity, caution is advised. Tenant demand is low, which further complicates the investment case. Overall, this zip code is not recommended for new investments unless landlords can operate efficiently at lower rent levels and are prepared for a smaller tenant base.
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.