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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,480 | $489,840 | 0.3% | F |
| 4BR | $1,700 | $697,516 | 0.24% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 49635 presents a nuanced scenario for both landlords and small-portfolio investors. With a median home value at $508,039, the area is positioned in a moderate price range, offering a balance between affordability and quality of life. The lack of percentage data on listings that have been reduced suggests stability in pricing, indicating that sellers are maintaining their asking prices without significant adjustments. This stability, combined with an unspecified median days on market (DOM), implies that homes are selling within a reasonable timeframe, reinforcing the notion that the market is steady and buyers are willing to meet the listed prices.
On the rental side, the Forward Monthly Rent (FMR) for the metro area in fiscal year 2026 is projected at $1,110, while the current market rate stands at $978 according to Census ACS data. This gap signals potential upward pressure on rents, suggesting that landlords could consider modest increases to align with future projections. However, it's important to note that such adjustments should be made cautiously, considering the local economic environment and tenant demand.
For long-term investors, the setup in ZIP 49635 implies a moderate appreciation thesis. Given the stable home values and the potential for rental rate growth, there is a realistic expectation for gradual property value increases. However, the absence of specific DOM data and percentage changes in listing reductions means that rapid appreciation is unlikely. Instead, the market conditions point towards a scenario where properties will maintain their value and offer steady returns through rental income and slow capital appreciation.
In summary, the median home value, the lack of significant price reductions among listings, and the alignment of rental rates with future projections suggest a market that will continue to support current pricing levels and offer opportunities for modest growth in both home values and rental incomes. Landlords and investors should focus on maintaining competitive rental rates and preparing for incremental value increases rather than expecting dramatic shifts in the market landscape.
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.