Location: Presque Isle County, MI | Metro: Cheboygan 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 | $780 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $207,984 | 0.52% | F |
| 3BR | $1,300 | $257,120 | 0.51% | F |
| 4BR | $1,470 | $362,219 | 0.41% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 properties in ZIP code 49721 in Cheboygan, MI, are significant and must be carefully considered. First, tenant turnover poses a notable challenge. With a market rent of $732 compared to the Fair Market Rent (FMR) of $1,080 for the metro area, landlords might face frequent changes in occupancy as tenants seek better rental deals outside of the voucher program. This can lead to increased administrative costs and potential property damage from frequent move-ins and move-outs.
Vacancy exposure is another critical risk factor. The data shows that the days on market (DOM) for vacant properties is not available, which suggests either a very tight or volatile rental market. In either case, landlords need to be prepared for periods of vacancy that can stretch longer than expected, leading to lost rental income during these times.
The deferred maintenance exposure is also considerable. Given the typical home value of $222,281 and a median income of $61,174, many residents may struggle to afford necessary repairs and upgrades. This financial strain could translate into higher maintenance costs for landlords, as they may need to take on more responsibility for keeping the property in good condition.
However, these risks are balanced by the high concentration of renters in the area. The 16.6% renter share indicates a robust demand for rental housing, which often correlates with a higher demand for Section 8 vouchers. This means that landlords can expect a steady stream of qualified tenants who are committed to paying their rent through the voucher program.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 49721 makes it a moderate risk for a first-time Section 8 landlord. The potential rewards of stable, government-backed rental income outweigh the risks, especially if the landlord is prepared to manage the property effectively.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.