Section 8 Fair Market Rent (FMR) for ZIP 49718 - 2027

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$860
1 Bedroom	$870
2 Bedrooms	$1,140
3 Bedrooms	$1,360
4 Bedrooms	$1,510
5 Bedrooms	$1,752
6 Bedrooms	$1,962
7 Bedrooms	$2,119
8 Bedrooms	$2,225

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 49718 in Emmet County, MI, serves as a **cash-flow anchor** within a Section 8 portfolio strategy. This designation is due to the significant spread between the Fair Market Rent (FMR) for the metro area in fiscal year 2026, which is set at $1,210, and the actual market rent of $725. Additionally, the median home value stands at $266,925, indicating a substantial gap between what the government will pay and what the market demands.

The FMR of $1,210 for ZIP 49718 is notably higher than the current market rent of $725. This means that landlords can secure steady, above-market rental income through the Section 8 program. The difference ensures that even if market conditions change, the guaranteed income from the program provides a stable financial base.

Furthermore, the median home value of $266,925 suggests that properties in this area are relatively affordable compared to other markets. This makes it easier for landlords to acquire assets and maintain a positive cash flow. With the government covering the rent, landlords can focus on property management rather than worrying about tenant turnover and market fluctuations.

While the area does not show strong indicators for appreciation plays, such as a low price-cut share or short days on market (DOM), it still offers a reliable source of income. The 24.2% renter share and median income of $48,750 indicate a stable demand for rental properties. However, these factors do not necessarily suggest rapid appreciation or a high potential for capital gains.

In summary, ZIP 49718 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Landlords can benefit from the guaranteed income and the stability provided by the significant spread between FMR and market rents. This allows for a solid financial foundation and reduces the risk associated with market volatility.

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.