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 | $1,210 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,230 | $323,340 | 0.38% | F |
| 2BR | $1,450 | $413,430 | 0.35% | F |
| 3BR | $1,850 | $482,164 | 0.38% | F |
| 4BR | $1,940 | $645,696 | 0.3% | F |
| 5BR | $2,250 | $793,870 | 0.28% | F |
U.S. Census Bureau data (2024)
The ZIP code 49684, located in Traverse City, Michigan, stands out within Grand Traverse County due to its significant rental population and moderate median income levels. With a total of 21,585 residents, nearly 31% of the population rents their homes, indicating a notable demand for rental properties. The median income in this area is $80,788, which is relatively high compared to national averages, yet the median home value of $478,917 suggests that homeownership remains a substantial financial commitment.
Moving to the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,380. This figure contrasts sharply with the market rent, known as ZORI, which is pegged at $1,856. Landlords and small-portfolio investors should be aware that accepting Section 8 vouchers could mean a lower rent income compared to market rates, but it also opens up opportunities to serve a portion of the population that might otherwise struggle to find affordable housing.
The data signature for ZIP 49684 reads as stable. The relatively high median income supports a robust local economy, and the significant rental population indicates a steady demand for rental units. While the gap between FMR and ZORI presents a challenge for those relying solely on voucher programs, it also highlights the potential for landlords to capitalize on the broader market if they can offer competitive amenities and services. For small-portfolio investors, the stability of the area provides a reliable foundation for investment, with the understanding that Section 8 properties will operate under different economic parameters than market-rate rentals.
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.