Location: Manistee County, MI | Metro: Benzie County, MI HUD Metro FMR Area
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 | $820 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,430 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,430 | $356,152 | 0.4% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 49616 in Manistee County, Michigan, reveals several key points for landlords and small-portfolio investors. First, regarding the rent math, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,030, which closely aligns with the market rent of $1,029 reported by the Census Bureau's American Community Survey (ACS). This indicates that rental properties priced at the market rate will likely meet the FMR standards, ensuring compliance with HUD guidelines.
Second, the acquisition cost for properties in this ZIP code is centered around a median home value of $324,840. While the data on days on market (DOM) and the percentage of homes needing price cuts is not available, the median home value suggests a moderate entry point for investment. The absence of high DOM and significant price-cut percentages implies a relatively stable market, though caution should be exercised without additional data.
Third, the tenant demand in ZIP 49616 is modest given its total population of 2,162 and a renter share of 11.6%. This indicates that only about 250 residents are likely to be renters, a number that could be challenging for landlords looking to maximize occupancy rates. The limited pool of potential tenants might necessitate competitive pricing strategies and targeted marketing efforts to attract and retain renters.
Verdict: The rent math in ZIP 49616 works, with the FMR and market rent being nearly identical. Acquisition costs are moderate but require further investigation into market liquidity. Tenant demand is low due to a small population and a minimal renter share, suggesting that while rental income can be achieved, it may be limited. Investors should proceed with careful consideration of these factors and be prepared for a niche market with fewer opportunities for scale.
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.