Location: Missaukee County, MI | Metro: Missaukee 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 | $730 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $195,496 | 0.52% | F |
| 3BR | $1,280 | $263,261 | 0.49% | F |
| 4BR | $1,340 | $339,646 | 0.39% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 49651, which includes Lake City, Michigan, is set at $990 for the metro area fiscal year 2026. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program. It's important to note that this is not the amount you will charge your tenants as rent; it's the maximum amount the government will pay on behalf of eligible low-income families.
To put this into perspective, the average rent in the area, according to the Census American Community Survey (ACS), is $962. This indicates that the FMR is slightly above the local average, providing a reasonable margin for landlords who decide to participate in the program.
With a renter share of 15.1%, there is a steady demand for rental properties in the area. This percentage reflects the portion of households that are renters, suggesting that approximately one out of every seven households in ZIP 49651 is looking for a place to rent. Given the local economic conditions, this demand can be sustained by the availability of vouchers through the Section 8 program.
If you're considering purchasing a property for your first Section 8 rental, the median home value in the area is around $225,131. This price point can be an entry-level investment, especially if you're planning to convert it into a rental property. The FMR helps ensure that you can receive a consistent income through the voucher payments, making it easier to manage mortgage payments and other expenses associated with owning a rental property.
Before you make the decision to enter the Section 8 market, verify that the property meets the necessary quality standards set by the Department of Housing and Urban Development (HUD). These standards are designed to ensure that the housing is safe, decent, and sanitary for tenants, and failing to meet these requirements can lead to penalties or termination of the contract.
In summary, the FMR of $990 provides a clear benchmark for what you can expect in terms of government payments. With the local average rent at $962 and a 15.1% renter share, the demand for rental properties is present. The median home value of $225,131 gives you a realistic idea of the acquisition cost. Ensure the property meets HUD quality standards to avoid any issues down the line.
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.