Location: Leelanau County, MI | Metro: Leelanau County, MI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,100 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 49654 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR in the metro area is set at $1,530. However, the current market rent in this area remains unspecified, indicating a potential lack of recent data.
If we assume that the market rent is higher than the FMR, which is often the case in areas with limited rental inventory, the gap between FMR and market rent would mean that landlords accepting Section 8 vouchers could be renting below the open-market rate. This scenario would present a challenge for landlords aiming to maximize their investment returns. The cost of housing voucher tenants below open-market rates can lead to reduced profit margins and might necessitate finding other ways to improve cash flow, such as increasing efficiency or reducing operational costs.
In ZIP 49654, only 9.5% of residents are renters, suggesting a primarily owner-occupied community. The median home value stands at $1,228,398, while the median household income is $136,563. These figures indicate a relatively affluent area where rental properties may not be the primary focus of the local real estate market.
To accurately assess the impact of Section 8 on investment yields in ZIP 49654, it's essential to know the precise market rent. Given the current data, landlords must carefully consider the financial implications of accepting lower rents through the Section 8 program versus the potential for higher returns in a more robust rental market.
Data Sources: FMR data from HUD (2027). 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.