Location: Emmet County, MI | Metro: Cheboygan County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,490 |
| 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)
In ZIP code 49716, where the median income stands at $100,179, the average market rent of $1,542 appears manageable for most households. However, when considering the Federal Market Rent (FMR) standard set at $1,140 for the fiscal year 2026, the disparity between the market rate and the voucher payment becomes significant. This difference means that landlords must decide whether to accept lower rental payments through vouchers or seek higher returns from cash-paying tenants.
The affordability gap is further highlighted by the low percentage of renters in the area, just 5.9%, which translates to approximately 60 rental units based on the total population of 1,006. Given this limited pool of potential tenants, landlords face stiff competition to secure both voucher recipients and cash-paying residents. The high median income suggests that there are enough cash-paying individuals willing to pay the market rate, but it also indicates that voucher holders might find it challenging to meet the required co-payment, typically 30% of their income.
To put this into perspective, a household earning the median income would be expected to contribute around $3,000 per month towards housing costs if they were paying 30% of their income. This amount far exceeds the $1,140 FMR, making it difficult for voucher holders to find suitable accommodation unless they can secure a landlord willing to accept the lower payment. For landlords, this scenario presents an opportunity to cater to either segment of the market, but they must weigh the benefits and challenges of each approach.
The takeaway for landlords is clear: accepting vouchers can provide a steady stream of rental income, albeit at a lower rate than the market. On the other hand, targeting cash-paying tenants could result in higher monthly rents but also increased competition for those units. Landlords should consider their long-term goals and the dynamics of their local rental market before deciding on a strategy.
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.