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 | $1,460 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,000 | $592,886 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 49664 presents several challenges for potential Section 8 landlords. First, consider the tenant turnover rate. With a market rent of $1,417 compared to the Fair Market Rent (FMR) of $1,610 for FY 2026 in the metropolitan area, landlords might experience higher turnover rates as tenants seek properties that match their voucher amounts. This discrepancy can lead to frequent vacancies and increased management costs.
Second, there is significant exposure to vacancy due to the lack of data on Days on Market (DOM), which indicates an unpredictable time frame for filling vacancies. This uncertainty can be particularly problematic during periods of economic downturn or when competing with non-subsidized rental units.
Third, deferred maintenance is a concern. Given the typical home value of $598,036 and the median income of $77,500, landlords must be prepared for the possibility that tenants receiving vouchers may not have additional funds to cover maintenance costs above the standard rent. This financial gap could necessitate larger investments from the landlord to keep properties in good condition.
However, these risks are tempered by the high concentration of renters in the area, with 8.8% of residents being part of the renter population. High renter density typically translates into greater demand for rental housing, including those supported by Section 8 vouchers. This increased demand can help mitigate the risk of extended vacancies and provide a steady stream of potential tenants.
In conclusion, the risk for a first-time Section 8 landlord in ZIP 49664 is moderate.
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.