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 | $1,320 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,820 | $596,497 | 0.31% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 49636 for Section 8 investment must evaluate several key factors. The first question to address is whether the Fair Market Rent (FMR) of $1,490 for the metro area in fiscal year 2026 can cover the debt service on a property valued at $633,814. To determine this, calculate the monthly debt service based on typical mortgage terms and compare it to the FMR. If the FMR is sufficient to meet the debt service requirements, proceed to the next evaluation.
The second step involves assessing the relationship between the market rent and the FMR. In ZIP 49636, the market rent is currently N/A, which means there isn't enough data to make a direct comparison. However, if the market rent were available and found to be above the FMR, this would indicate that Section 8 tenants might struggle to find housing, thus reducing demand. If the market rent equals or is below the FMR, then the area is likely suitable for Section 8 properties.
The final consideration is the demand for rental properties. ZIP 49636 has a rental rate of 5.8% of the population, with an average of N/A days on the market before being rented. This lack of specific Days on Market (DOM) data makes it challenging to assess demand accurately. If the DOM were known and relatively low, say under 30 days, it would suggest strong demand, supporting a positive decision. Conversely, high DOM values would imply weaker demand.
Decision Tree:
To summarize, a landlord should only consider purchasing in ZIP 49636 if the FMR sufficiently covers the debt service and aligns with or exceeds the market rent. Additionally, a low DOM is necessary to ensure adequate demand. Without complete data, the decision remains uncertain, necessitating additional research.
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.