Location: Otsego 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 | $840 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $292,192 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 49730 in Otsego County, Michigan, reveals several key points for landlords and small-portfolio investors considering the area.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,070. However, the current market rent, as per Census ACS data, is lower at $967. This suggests that landlords may need to adjust their expectations downward, as the actual market rate is below the FMR. To succeed financially, landlords must ensure that their rental income covers costs and generates a profit at the $967 rate.
Regarding the affordability of acquisition, the median home value in ZIP 49730 is $261,447. Unfortunately, the data does not provide insights into the typical days on the market (DOM) or the percentage of homes that require price cuts before selling. Without these metrics, it's challenging to assess how quickly properties can be turned over or if there is significant negotiation room when purchasing homes.
The third point concerns tenant demand. ZIP 49730 has a total population of 2,170, with only 5.9% of residents being renters. This indicates a relatively low demand for rental properties compared to other areas. Landlords should prepare for a competitive market and possibly longer vacancy periods given the limited number of potential tenants.
In summary, while the rent math is feasible at the current market rate of $967, landlords must manage their expectations against the FMR of $1,070. Acquisition costs are clearly defined with a median home value of $261,447, but without additional data on DOM and price-cut shares, the ease of property acquisition remains uncertain. Lastly, the low renter share of 5.9% in a small population of 2,170 poses challenges for tenant demand, suggesting that landlords should carefully consider their investment strategy in this ZIP code.
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.