Location: Emmet County, MI | Metro: Emmet County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,040 for ZIP 49764 (Oden, MI) will sufficiently cover the mortgage on a home priced at $341,200. Given the median home value, a typical mortgage payment could range widely depending on the interest rate and loan terms. However, the FMR does provide a benchmark for rental income potential.
The investor may also wonder if there is sufficient rental demand at 100.0% occupancy. While the occupancy rate is high, it is important to note that only 14.5% of the population in Oden are renters. This suggests a relatively smaller pool of potential tenants compared to owner-occupied homes.
Another concern is whether Section 8 vouchers will keep pace with the market rents. Unfortunately, the data does not provide a direct comparison between voucher amounts and market rents. However, the median monthly rent for a 4-bedroom home in Oden is $1,350, which is significantly higher than the FMR. This indicates that market rents are likely outpacing voucher amounts.
In summary, while the FMR of $1,040 provides a starting point for rental income, the actual mortgage coverage will depend on individual financial circumstances. The rental demand appears strong but limited to a smaller percentage of the population. Lastly, it is likely that market rents are increasing faster than voucher amounts, suggesting a need for careful consideration when relying solely on Section 8 tenants.
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.