Location: Mason County, MI | Metro: Mason 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 | $880 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $260,264 | 0.43% | F |
| 3BR | $1,460 | $319,298 | 0.46% | F |
| 4BR | $1,470 | $388,592 | 0.38% | F |
U.S. Census Bureau data (2024)
The ZIP code 49431, located in Ludington, Michigan, presents an interesting scenario when analyzed from the perspective of renters. The median income for households in this area stands at $66,336, which is a solid financial base but does not necessarily translate into the ability to afford the market rate rent of $914 per month as reported by the Census ACS.
To put this into perspective, let's consider the financial feasibility for a household earning the median income. If we assume that housing costs should not exceed 30% of a household's gross income—a common benchmark—then the maximum affordable rent would be around $1,660 per month. However, the actual market rate of $914 is significantly lower than this threshold, indicating that the typical household in Ludington could afford the average rental cost without strain.
Now, comparing the market rate to the Fair Market Rent (FMR) set by HUD for the metro area in fiscal year 2026, which is $1,050, it becomes evident that the market rate is below the FMR. This means that landlords in Ludington have a pricing advantage over the federal standard, potentially attracting tenants who might be looking for deals outside the voucher system.
With 27.7% of the population being renters and a total population of 17,184, there is a notable demand for rental properties in Ludington. However, the affordability gap suggests that a significant portion of potential renters might find the market rate more appealing than the voucher program, given the lower rent compared to the FMR.
This dynamic has implications for landlord competition. Landlords who rely solely on market-rate rents might face less competition compared to those who cater exclusively to voucher recipients. The disparity between the FMR and the actual market rate creates an environment where landlords have flexibility in their pricing strategies.
Takeaway for landlords: In ZIP 49431, focusing on market-rate tenants rather than voucher recipients could be a more lucrative strategy. Given the median income and the relatively low market rate, there is a robust pool of potential tenants who can afford the current rates. However, landlords should also be prepared to offer competitive amenities and maintenance standards to attract these cash-paying tenants amidst a growing demand for rental properties.
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.