Location: Lake County, MI | Metro: Lake County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The rental market in ZIP code 49642 presents a challenging landscape for both renters and landlords. The median income for households in this area stands at $26,950, which is significantly lower than the $763 market rate for renting as reported by the Census ACS. This means that the average renter would need to allocate over 35% of their annual income just to cover monthly rent, making it a financial strain.
In comparison, the federal payment standard for housing vouchers, known as the Fair Market Rent (FMR), is set at $970 for the fiscal year 2026. This figure is higher than the current market rate, indicating that voucher holders have more purchasing power when it comes to finding suitable accommodation. However, the higher voucher rate also suggests that landlords could potentially receive slightly better compensation if they accept vouchers, though it remains within the affordable range for the area.
The ZIP code has a relatively low percentage of renters at 18.1%, with a total population of 985. This limited demand for rentals coupled with the high cost of living relative to income creates a significant affordability gap. Landlords will likely face stiff competition for tenants who can afford the market rate, especially given the economic constraints faced by many residents.
The takeaway for landlords considering whether to accept vouchers or focus on cash-paying tenants is clear: the area's economic profile makes it difficult for many renters to afford the market rate. Accepting vouchers can be a strategic move to secure tenants, as it aligns more closely with the higher FMR rate and provides a more stable source of income. Moreover, it broadens the pool of potential tenants beyond those who might struggle to consistently pay $763 per month.
Data Sources: FMR data from HUD (2027). 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.