Location: Grand Traverse 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 | $1,210 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $385,851 | 0.38% | F |
| 3BR | $1,930 | $424,493 | 0.45% | F |
| 4BR | $1,970 | $542,154 | 0.36% | F |
| 5BR | $2,285 | $637,146 | 0.36% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for the ZIP code 49696, which encompasses Traverse City, MI, and the Grand Traverse County HUD Metro FMR Area, stands at $1,320 for FY 2026. This figure is based on the metropolitan area scope. In comparison, the market rent as reported by the Census ACS is $1,418. Given these numbers, landlords and small-portfolio investors can expect that voucher tenants will generally cashflow at the FMR, but only marginally so, as the FMR is slightly below the market rent.
To derive the rent-to-price ratio, we can use the median home value of $434,810. The annual rent at the market rate ($1,418 per month) would be $17,016. Dividing this by the median home value gives us a rent-to-price ratio of approximately 0.0039, or 0.39%. This suggests that rental income is relatively low compared to the value of homes in the area, implying that the primary financial benefit of owning rental properties here may come from appreciation rather than cash flow.
The median Days on Market (DOM) is not available, and the share of listings that incur a price cut is 0.2%. These figures indicate a stable housing market where properties are typically sold quickly without significant price adjustments. For investors, this stability means that the risk of holding onto unsold inventory is minimal, and the chances of needing to reduce asking prices are slim.
In summary, while voucher tenants in ZIP 49696 will provide marginal cash flow due to the slight gap between FMR and market rent, the strong appreciation potential and market stability make this area an attractive investment opportunity for those looking to build long-term wealth through property ownership.
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.