Location: Wexford County, MI | Metro: Lake 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 | $780 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $191,753 | 0.58% | F |
| 3BR | $1,370 | $253,447 | 0.54% | F |
| 4BR | $1,660 | $317,791 | 0.52% | F |
| 5BR | $1,926 | $375,814 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in Cadillac, MI (ZIP 49601), within the Wexford County metro area, presents a favorable opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area, set at $1,050 for fiscal year 2026, exceeds the market rent of $887 as reported by the Census ACS. This means that voucher tenants will typically cashflow at the FMR rate, providing a positive financial outlook for property owners.
To understand the potential returns, consider the median home value in the area, which stands at $229,495. This yields a rent-to-price ratio of approximately 0.4%, indicating that rental income can be a significant portion of the total investment value. Given that the FMR is higher than the average market rent, this ratio suggests that properties in Cadillac, MI, can generate above-average rental income relative to their purchase price.
The dynamics between renting and buying in the area also favor investors. With a median Days on Market (DOM) that is not applicable (N/A) due to limited data, and a negligible 0.1% share of homes experiencing price cuts, the market shows a high level of stability. This stability is crucial for investors as it reduces the risk of property devaluation and ensures consistent rental income.
In summary, the strong cashflow potential from voucher tenants, combined with a stable housing market, makes Cadillac, MI, an attractive location for Section 8 investors. The primary angle for investors here is the robust cashflow opportunities, given the discrepancy between the HUD FMR and the actual market rent.
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.