Location: Charlevoix County, MI | Metro: Antrim County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 49712, centered around Boyne City, Michigan, reveals a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by the federal government for the metro area for fiscal year 2026 is $1,110. In contrast, the Census ACS reports the average market rent at $941. This creates a gap of $169, or approximately 15.2%, between what the government deems fair and what the market currently offers.
Given that the FMR exceeds the market rent, this scenario positions Boyne City as a yield play for landlords. Voucher tenants, who are guaranteed a portion of their rent through government subsidies, can provide a steady stream of income that matches or exceeds the local market rates. This means landlords can potentially charge higher rents without the risk associated with collecting payments from non-subsidized tenants. The median home value of $412,615 and the median income of $74,033 indicate a community where homeownership is prevalent, but still, 19.0% of residents are renters. This mix suggests a diverse rental market, with opportunities for both single-family homes and multi-unit properties.
The discrepancy between FMR and market rent also highlights the financial advantage of accepting Section 8 tenants. Landlords can benefit from receiving the higher FMR rate, which is $169 more per month than the average market rent. This makes it particularly attractive for those looking to stabilize cash flow and reduce vacancy risks, especially in a market where only a minority of the population (19%) are renters. Given the relatively high median income and home values, there might be a perception among some landlords that the rental market is less lucrative compared to owning homes. However, the Section 8 program can bridge this gap, making renting a more viable option.
In conclusion, the gap between the FMR and the actual market rent in Boyne City, Michigan, presents a clear opportunity for landlords to increase their yields. By accepting voucher tenants, landlords can capitalize on the government's willingness to pay above the local market rates, ensuring a stable and potentially higher income stream. This is particularly relevant in an area where homeownership is dominant, but the rental market remains a significant part of the housing landscape.
Data Sources: FMR data from HUD (2027). 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.