Location: Emmet County, MI | Metro: Cheboygan County, MI
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 | $940 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $312,253 | 0.4% | F |
| 3BR | $1,480 | $327,809 | 0.45% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 49706, which encompasses Alanson in Emmet County, Michigan, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for fiscal year 2026 is set at $1,040. This figure is specific to this ZIP code and reflects the government's assessment of the fair rental value in the area.
However, the local market rent for a similar two-bedroom unit is slightly higher at $1,146 according to the Census ACS (American Community Survey) data. This indicates that landlords might face a slight shortfall if they rely solely on Section 8 vouchers to cover their rental costs.
A landlord participating in the Section 8 program receives a subsidy from the government, but it's not the entire rent. Tenants contribute a portion of the rent based on their income, typically around 30% of their adjusted monthly income. The remaining amount is covered by the housing authority up to the SAFMR limit. For instance, if a tenant's share is $300, the housing authority will pay the difference up to $1,040, which is $740 in this case. If the tenant's share exceeds $300, the housing authority will still only pay up to the SAFMR cap of $1,040.
In addition to the base rent subsidy, there are utility allowances. These vary by location and can affect the total reimbursement received by the landlord. However, the utility allowance does not increase the overall SAFMR; it remains capped at $1,040 for a two-bedroom unit in ZIP 49706.
To illustrate the reimbursement gap, consider a scenario where the local market rent is $1,146. With a tenant contributing $300, the housing authority would cover the remaining $740, up to the SAFMR limit. This leaves a gap of $106 ($1,146 - $1,040) that the landlord must absorb. In other words, landlords in ZIP 49706 will receive a reimbursement of $1,040 per month for a two-bedroom unit, regardless of the actual market rent, leading to a shortfall of $106 when compared to the local market rate.
Thus, landlords and small-portfolio investors should be aware of this economic reality when considering participation in the Section 8 program in ZIP 49706. The reimbursement gap is a consistent $106 per month for a two-bedroom unit, assuming the tenant's share is $300 and the market rent is $1,146. This means landlords must either adjust their expectations or find ways to offset this shortfall to maintain profitability.
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.