Location: Benzie 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $453,037 | 0.32% | F |
| 4BR | $1,550 | $537,121 | 0.29% | F |
U.S. Census Bureau data (2024)
The ZIP code 49617, located in Benzie County, MI, serves as a strategic cash-flow anchor within a Section 8 portfolio. The key factor supporting this classification is the significant spread between the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) and the actual market rents. For fiscal year 2026, the HUD's FMR for this area is set at $1,030, whereas the current market rent stands at $738. This discrepancy ensures that landlords can charge higher rents compared to what the market would typically bear, thereby enhancing cash flow.
The median home value in ZIP 49617 is $423,591, which indicates a relatively stable housing market. However, the focus for Section 8 properties should be on rental income rather than property value appreciation, given that the price-cut share and days on market (DOM) are not applicable here. The high FMR supports the ability to maintain steady rental income even if the broader housing market fluctuates.
Additionally, the ZIP code has a 6.7% renter share, suggesting that while the majority of residents own their homes, there is still a notable portion of renters. The median income of $74,207 provides insight into the financial capacity of the local population, ensuring that there is sufficient demand for affordable housing options that fall under the Section 8 program.
In summary, ZIP 49617 is best suited as a cash-flow anchor due to the substantial difference between HUD's FMR and the market rent. Landlords can leverage this gap to secure reliable income streams, making it an attractive addition to a Section 8 portfolio strategy focused on financial stability and predictable returns.
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.