Location: Leelanau County, MI | Metro: Leelanau 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 | $1,010 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,620 | $814,270 | 0.2% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 49653 reveals a unique balance between yield and stability that is worth exploring for both landlords and small-portfolio investors.
On the yield axis, the data indicates a strong potential for rental income. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,200, while the market rent stands at $1,065. This suggests that there is room for negotiation and potentially higher rents compared to the market average. However, the median home value of $806,782 is significantly higher, which means that purchasing properties in this ZIP code will require a substantial investment. For investors looking to maximize their return on investment through rental income, this ZIP code offers a promising opportunity due to the higher FMR compared to the market rent.
Moving to the stability axis, the figures paint a picture of a moderately stable market. With only 6.6% of residents being renters, the majority of the population owns their homes, indicating a relatively low demand for rental properties. This could be interpreted as lower stability since fewer tenants mean less consistent cash flow. The lack of data on days on market (DOM) suggests that property turnover rates are either stable or not tracked closely enough to provide insight. Lastly, the average income of $85,787 provides a solid economic foundation, supporting the ability of residents to afford higher rents but also suggesting a preference for homeownership over renting.
Based on these figures, ZIP code 49653 can be classified as a medium-stability, medium-yield market. It does not offer the high yields typically associated with flip-style markets, nor does it provide the steady cash flow often seen in areas with a higher percentage of renters. Instead, it presents an opportunity for investors who can afford the high entry cost of purchasing properties and are willing to accept a moderate level of risk in terms of tenant availability and economic fluctuations.
To summarize, the key figures driving this classification are the $1,200 FMR versus the $1,065 market rent, the 6.6% rental rate, and the $85,787 average income. These metrics suggest a market where the potential for rental income exists, but it must be weighed against the economic realities of a primarily homeowner-based community.
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.