Section 8 Fair Market Rent (FMR) for ZIP 49709 - 2027

Location: Montmorency County, MI | Metro: Montmorency County, MI

Investment Score for ZIP 49709

N/A

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$720
1 Bedroom	$930
2 Bedrooms	$1,010
3 Bedrooms	$1,410
4 Bedrooms	$1,440
5 Bedrooms	$1,670
6 Bedrooms	$1,870
7 Bedrooms	$2,020
8 Bedrooms	$2,121

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,410	$210,212	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,772

Median Household Income

$51,154

Housing Units

3,746

Renter Percentage

7.8%

Occupancy Rate

51.9%

Renter Occupied

151

The ZIP code 49709, located in the heart of Michigan's Lower Peninsula, offers a unique blend of rural charm and accessibility to urban amenities, making it an attractive location for both residents and investors. The area is characterized by its stable housing market, which presents opportunities for those looking to invest in affordable rental properties.

Fair Market Rent: For fiscal year 2026, the Fair Market Rent (FMR) for a two-bedroom apartment in the metro area is set at $970, indicating a steady demand for moderately priced housing options.
Market Rent: According to the latest Census American Community Survey (ACS), the average market rent for a property in ZIP 49709 is $699, suggesting that there is room for growth in rental pricing without overstepping the local affordability threshold.
Median Home Value: The median home value stands at $161,779, offering a relatively low barrier to entry for investors seeking to acquire rental properties in this area.
Renter Share: Renter share of the population is 7.8%, reflecting a smaller but consistent demand for rental units. This percentage can be leveraged to target specific segments of the rental market effectively.
Median Income: With a median household income of $51,154, tenants in ZIP 49709 have the financial capacity to afford rents up to the Fair Market Rent level, ensuring a stable tenant pool.

In summary, ZIP 49709 provides a balanced investment opportunity with a clear gap between the current market rent and the Fair Market Rent. Given the median home values and incomes, there is potential for increasing rental rates closer to the FMR without compromising occupancy. However, the lower renter share suggests that competition for tenants might be fierce, necessitating well-maintained properties and competitive pricing strategies to attract and retain renters. This analysis points to a promising but nuanced market where careful property selection and management practices will be key to success.

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.