Location: Leelanau County, MI | Metro: Leelanau 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 | $1,190 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,630 | $524,928 | 0.31% | F |
| 4BR | $1,800 | $633,673 | 0.28% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 49621 presents a nuanced picture for both landlords and small-portfolio investors. With a median home value of $514,749, the area stands out as a stable investment opportunity. The absence of data on reduced listings and days on market (DOM) suggests a consistent market without significant fluctuations, indicating that sellers have maintained strong pricing power. This stability is likely to continue over the next 12-24 months, barring any unforeseen economic downturns.
On the rental side, the Forward Monthly Rent (FMR) for ZIP 49621 is projected at $1,400 for fiscal year 2026, while the current market rate, according to the Census ACS, is $1,012. This gap between the FMR and the actual rental rates signals an upward trend in potential rental income. Landlords and investors should prepare for gradual increases in rental demand, which could lead to higher rental yields in the future. However, it's important to note that such increases will depend on the broader economic conditions and local employment trends.
For long-term investors, the setup implies a moderate appreciation thesis. Given the current median home value and the projected increase in rental income, the property values in ZIP 49621 are likely to appreciate at a steady pace. This appreciation, however, will be tempered by the overall housing market dynamics and the local economy's performance. Investors should consider diversifying their portfolios and not rely solely on appreciation as a source of returns.
A balanced approach would involve leveraging the current rental rates to generate cash flow while anticipating a gradual rise in property values. The market in ZIP 49621 offers a solid foundation for those looking to invest in a stable and potentially growing real estate sector. Landlords and small-portfolio investors should focus on maintaining quality properties and staying abreast of local economic indicators to ensure they capitalize on the market's inherent strengths.
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.