Location: Grand Traverse 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 | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $306,329 | 0.44% | F |
| 3BR | $1,760 | $373,464 | 0.47% | F |
| 4BR | $1,930 | $470,497 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 49643, located in Interlochen, Michigan, falls within the Grand Traverse County, MI HUD Metro FMR Area. The Fair Market Rent (FMR) for the area is set at $1,320 for fiscal year 2026. This figure is a benchmark used by the U.S. Department of Housing and Urban Development (HUD) to determine eligibility for various housing assistance programs.
Comparatively, the market rent in ZIP 49643 is $1,017, which is lower than the HUD FMR of $1,320. This indicates that rental properties in this ZIP code might be slightly undervalued relative to the HUD's assessment. However, the median home value stands at $364,503, which is a significant figure suggesting a higher cost of ownership compared to some other areas within the county. The renter share, at 12.7%, is moderate and implies a balanced mix of homeowners and renters.
To determine whether 49643 is a value pocket, a mid-tier neighborhood, or a premium sub-market within its metro, we can analyze the provided figures against typical characteristics of these categories. A value pocket would generally have lower market rents and home values, along with a higher renter share, indicating affordability and attractiveness to subsidized housing programs. A mid-tier neighborhood would have average market rents and home values, reflecting a standard cost of living without significant deviations from the norm. A premium sub-market would feature higher market rents and home values, signaling a desirable location with increased demand.
Based on the data, ZIP 49643 exhibits traits of both a mid-tier neighborhood and a potential value pocket. The market rent is below the HUD FMR, making it potentially more affordable for those seeking rental accommodation. Additionally, the median home value is relatively high, but the renter share is not exceptionally low, suggesting that while there is a substantial investment opportunity, it is also accessible to renters.
A notable divergence is the combination of a moderate renter share with below-metro home values. This could indicate that 49643 is an attractive location for Section 8 participants, as it offers a balance between affordability and quality of life. Landlords and small-portfolio investors should consider the potential for rental income supported by housing subsidies, alongside the higher median home value, when evaluating investment opportunities in this ZIP code.
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.