Location: Leelanau 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 | $1,170 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,340 |
| 5 Bedrooms | $2,714 |
| 6 Bedrooms | $3,040 |
| 7 Bedrooms | $3,283 |
| 8 Bedrooms | $3,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,040 | $398,032 | 0.51% | F |
| 4BR | $2,340 | $459,151 | 0.51% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 49650 stands at $87,500. At first glance, this might seem sufficient to cover the market rate rent of $1,576, which is nearly identical to the Fair Market Rent (FMR) standard set at $1,580 for metro areas in fiscal year 2026. However, the reality is more nuanced. A household earning the median income would spend approximately 44% of their pre-tax income on rent alone, assuming no other significant expenses. This is well above the recommended guideline of spending no more than 30% of income on housing.
The affordability gap in ZIP 49650 is significant, given that only 9.9% of the 3,411 residents are renters. This means that the rental market is relatively small and competitive, with landlords vying for a limited pool of potential tenants. The high cost of living relative to income suggests that many households may struggle to pay market rates without assistance.
Landlords considering their strategy for accepting tenants should be aware of these dynamics. While cash-paying tenants can offer a straightforward financial arrangement, they may be harder to come by due to the tight affordability constraints. On the other hand, tenants utilizing vouchers could provide a steady, government-backed source of income, albeit at a fixed rate that matches the FMR of $1,580. Given the similarity between the market rate and the FMR, landlords who accept vouchers are likely to receive comparable payments to those who choose cash-paying tenants.
The takeaway for landlords is that while the voucher payment standard closely mirrors the market rate, the competitive landscape of the rental market in ZIP 49650 means that diversifying tenant acquisition strategies could be beneficial. Accepting vouchers helps tap into a segment of the market that might otherwise be excluded due to the high cost of rent relative to local incomes. This approach can ensure a consistent stream of income and help landlords maintain occupancy levels, which is crucial in a market with limited demand.
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.