Location: Emmet County, MI | Metro: Antrim 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 | $850 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $362,332 | 0.33% | F |
| 3BR | $1,640 | $435,751 | 0.38% | F |
| 4BR | $1,720 | $618,165 | 0.28% | F |
| 5BR | $1,995 | $1,010,056 | 0.2% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into the real estate market in ZIP 49720, Charlevoix, MI, might have several valid concerns regarding the feasibility of investing in this area. Let's address these concerns with the available data.
Will FMR $1,060 (metro FY 2026) cover the mortgage on a $435,393 home?
The Fair Market Rent (FMR) for a single-family home in the Charlevoix metro area for fiscal year 2026 is projected to be $1,060. To determine if this will cover the mortgage, we need to calculate the monthly payment on a $435,393 home. Assuming a fixed-rate mortgage with an interest rate of around 4.5%, the monthly payment would be approximately $2,175. This means that the FMR of $1,060 alone would not cover the mortgage payments. However, it's important to note that FMR is just one measure; actual market rents can be higher, especially for homes with unique features or in desirable locations.
Is there enough renter demand at 18.1%?
The rental demand in ZIP 49720 stands at 18.1%. While this percentage is relatively low compared to urban areas, it still represents a significant number of potential renters. The low percentage could indicate a smaller pool of tenants, but it also suggests less competition among landlords. Additionally, the median household income in the area is $55,000, which supports the ability of residents to afford the $1,060 rent. Investors should consider diversifying their portfolio to include different property types to cater to various segments of the market.
Will vouchers keep pace with $1,010 market rents?
The voucher amount is expected to be $1,010, matching the current market rent. This parity is crucial for landlords who accept vouchers, ensuring they receive a fair rent that covers their expenses. However, the data does not provide a forecast for future increases in voucher amounts. Given the historical trend of HUD adjusting voucher amounts annually based on inflation and housing costs, it's reasonable to expect that adjustments will continue, though the exact figure is uncertain. Landlords should monitor local HUD announcements and economic indicators to stay informed on any changes.
In summary, while the FMR alone won't cover the mortgage on a $435,393 home, the combination of market rents and potential for higher pricing on unique properties can make up the difference. The 18.1% rental demand is manageable with strategic investment, and the current parity between voucher amounts and market rents provides stability, though future adjustments must be tracked closely.
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.