Location: Manistee County, MI | Metro: Manistee County, MI
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 | $810 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $239,342 | 0.61% | D |
U.S. Census Bureau data (2024)
The ZIP code 49645 is situated in a small suburban neighborhood characterized by a modest population of 1,923 residents. The area reflects a typical American community with a rental demographic comprising 17.8% of the total population. The median household income here stands at $56,300, indicating a middle-class community where affordability is a key consideration for many. Median home values in the area are set at $223,053, which suggests a stable housing market with homes that are reasonably priced.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is established at $1,100. However, the current market rent, according to the Census Bureau's American Community Survey, is lower at $992. This discrepancy highlights an opportunity for investors who can position themselves between the FMR and the actual market rent, potentially attracting tenants who qualify for Section 8 vouchers due to the affordability gap.
Given these conditions, ZIP 49645 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the relatively low market rent compared to the FMR provides a margin of safety, ensuring that rents are covered by the voucher program without the need for active property management. On the other hand, hands-on investors could find opportunities to enhance properties and command rents closer to the FMR, thereby increasing their cash flow while still being attractive to voucher recipients.
In summary, ZIP 49645 offers a balanced investment environment for Section 8 investors, with a clear understanding of the local economic landscape and rental dynamics. Whether focusing on passive income or active property improvement, the data points towards a promising investment scenario.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.