Location: Wexford County, MI | Metro: Grand Traverse 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 | $1,030 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,670 | $303,708 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 49620, located in Wexford County, MI, within the Cadillac Metro Area, can serve as a valuable component of a Section 8 portfolio strategy. Given the provided data, ZIP 49620 stands out as a cash-flow anchor.
The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,250. In contrast, the current market rent for ZIP 49620 is $1,105, indicating a spread of $145. This difference suggests that properties in ZIP 49620 are undervalued relative to the FMR, providing a potential opportunity for landlords and small-portfolio investors to secure steady cash flow.
The median home value in ZIP 49620 is $282,584, which is relatively stable and not indicative of rapid appreciation. Therefore, it does not present itself as an appreciation play. Furthermore, there is no specific data available regarding the price-cut share or days on market (DOM) for ZIP 49620, reinforcing the notion that it is not primarily an investment for capital gains.
ZIP 49620 offers a 15.4% renter share, suggesting that a significant portion of the population is already inclined towards renting. Additionally, the median income in the area is $75,192, which indicates that residents have the financial capacity to meet rental obligations, particularly those tied to Section 8 vouchers.
Incorporating ZIP 49620 into a Section 8 portfolio strategy allows investors to leverage the discrepancy between the FMR and market rent. This makes it an ideal location for generating consistent cash flow, given the stable home values and the proportion of residents who are likely to use rental assistance programs.
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.