Location: Kalkaska County, MI | Metro: Grand Traverse 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 | $1,030 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,660 | $256,658 | 0.65% | D |
U.S. Census Bureau data (2024)
The ZIP code 49680, located within the Kalkaska County, MI HUD Metro FMR Area, presents a unique set of characteristics that distinguish it from other ZIP codes in the region. The Fair Market Rent (FMR) for 49680 is set at $1,210 for the fiscal year 2026, which is notably higher than the market rent of $833. This suggests that the government's estimate of rental costs in this area is above what the local market currently demands.
In terms of home values, 49680 has an average price of $219,332. This figure is likely representative of the overall housing market within the county, indicating a relatively stable property value that aligns with the broader economic conditions of the area. The renter share in this ZIP code stands at 6.1%, which is a critical metric for understanding the tenant makeup and potential demand for rental properties.
When comparing 49680 to typical ZIP codes within the Kalkaska County, MI HUD Metro FMR Area, it appears to be a mid-tier neighborhood. Its FMR is above the market rent, but the home values and renter share suggest a balanced market rather than a premium sub-market. However, the divergence between the FMR and the actual market rent could indicate a potential value pocket for landlords who can leverage the gap between government subsidies and local rental prices.
The relatively low renter share of 6.1% does not necessarily signal a Section 8 sweet spot, given that the home values are not significantly below the metro average. For landlords and small-portfolio investors looking to capitalize on Section 8 opportunities, they should consider the higher FMR as a positive indicator for receiving greater subsidies per unit. Additionally, the lower market rent could mean that there is room for modest increases without pricing out tenants who rely on government assistance.
To conclude, 49680 offers a balanced environment for real estate investment with specific advantages in the form of higher FMRs compared to market rents. This makes it a favorable location for landlords seeking to participate in the Section 8 program, as it provides a good balance between subsidy levels and local rental market dynamics.
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.