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 | $1,320 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,860 | $749,689 | 0.25% | F |
| 4BR | $2,060 | $1,092,471 | 0.19% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for landlords investing in ZIP 49670 through Section 8 are significant. Tenant turnover is a critical issue, with market rents at $1,058 being notably lower than the Fair Market Rent (FMR) of $1,720 for the area in fiscal year 2026. This disparity suggests that tenants who qualify for Section 8 vouchers might find it easier to leave for higher-quality housing outside the program, leading to frequent turnover and associated costs.
Vacancy exposure is another concern. The days on market (DOM) figure is currently unavailable, which indicates a lack of transparency or data in this aspect. However, with a relatively high FMR compared to market rents, there's a risk of vacancies if landlords rely solely on Section 8 vouchers. The demand for rental properties may not be sufficient to ensure consistent occupancy.
The deferred-maintenance exposure is substantial. With an average home value of $735,181 and a median household income of $116,133, landlords must be prepared for potential maintenance issues that tenants might not be able to afford or address promptly. This financial gap between property values and incomes can lead to higher repair costs and longer periods without necessary upkeep, impacting the overall condition of the property.
Despite these risks, the high concentration of renters in ZIP 49670, representing 3.2% of the total population, typically translates into robust demand for Section 8 vouchers. This dense renter market can provide a steady stream of applicants, mitigating some of the vacancy concerns. Additionally, the higher FMR can attract tenants willing to pay the premium for better quality housing, potentially reducing turnover rates.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.