Location: Otsego County, MI | Metro: Otsego 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 | $940 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $209,871 | 0.57% | F |
| 3BR | $1,510 | $279,322 | 0.54% | F |
| 4BR | $1,670 | $346,164 | 0.48% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 49735 in Gaylord, MI, are significant. Tenant turnover is a critical issue, with the market rent at $1,020 being notably lower than the Fair Market Rent (FMR) of $1,090 for FY 2026 in the metro area. This disparity can lead to higher turnover rates as tenants seek properties that offer better value for their money.
Vacancy exposure is another concern. The average days on market (DOM) is not available, which suggests that there might be periods where rental units remain vacant longer than expected. This can result in financial strain for landlords who rely on consistent rental income.
Deferred maintenance is also a risk factor. With a typical home value of $259,151 and a median income of $70,819, many residents may struggle to afford timely repairs and maintenance. This can translate into landlords having to shoulder unexpected costs to keep properties up to standard, especially when dealing with Section 8 properties that require adherence to specific housing quality standards.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 24.6%. High renter density typically indicates a robust demand for rental properties, including those that accept Section 8 vouchers. This strong demand can help stabilize occupancy rates and provide a steady stream of potential tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.