Location: Emmet County, MI | Metro: Emmet County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 49740, Harbor Springs, MI, reveals some interesting insights. To start, let's annualize the Fair Market Rent (FMR) for a 2-bedroom unit, which is set at $1,340 per month for fiscal year 2026. This translates into an annual rental income of $16,080. When compared to the median home value of $561,866, this yields a gross rental yield of approximately 2.86%. The calculation is straightforward: divide the annual rental income by the property value.
Next, consider the market rent figure of $991 per month, derived from Census ACS data. This results in an annual rental income of $11,892, which when divided by the median home value of $561,866, gives a gross rental yield of roughly 2.12%. This is significantly lower than the FMR-based yield, reflecting the actual rental rates in the area.
Given the renter density of 12.3%, it becomes clear that the market rent scenario is more realistic. A low renter density suggests that there is limited demand for rental properties, making it unlikely that landlords can charge the higher FMR rates consistently. Additionally, the N/A-day Days on Market (DOM) indicates that there might be a lack of recent transactional data, further supporting the use of market rent figures for a more accurate assessment.
In summary, while the FMR-based gross rental yield of 2.86% might seem attractive, the actual market conditions suggest a more modest yield of around 2.12%. Landlords and small-portfolio investors should focus on the market rent scenario to ensure they are setting realistic expectations for their investment returns in ZIP 49740.
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.