Location: Presque Isle County, MI | Metro: Alpena 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 | $720 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,400 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,400 | $233,248 | 0.6% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 49746, located in Presque Isle County, Michigan, reveals a favorable environment for those seeking stable rental income. The HUD Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970. This figure is significantly higher than the average market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $625. Given this disparity, voucher tenants in this region will cashflow at the HUD FMR, ensuring that landlords receive a consistent and above-average rental income.
To further understand the investment potential, consider the median home value in ZIP 49746, which is $190,004. Using the HUD FMR of $970, we can calculate a rent-to-price ratio of approximately 0.51%. This low ratio indicates that rental properties in this area offer good value compared to purchasing a home, making it an attractive option for both long-term rental investments and short-term flips.
The dynamics of days on market (DOM) and price-cut share do not significantly impact the decision-making process for investors in this region, as these metrics are not applicable or available. However, the strong cashflow potential derived from the HUD FMR far outweighs any concerns about the lack of data on DOM and price-cut shares.
The strongest investor angle in ZIP 49746 is cashflow. With the HUD FMR well above the market rent, landlords can expect to generate substantial monthly income without the need for premium units, providing a solid foundation for real estate investment in this area.
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.