Location: Presque Isle County, MI | Metro: Cheboygan County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 49765 are significant. First, consider the disparity between the market rent at $769 and the Fair Market Rent (FMR) at $970 for fiscal year 2026 in the metropolitan area. This gap suggests that tenants might be inclined to move frequently, seeking higher subsidies elsewhere, leading to increased tenant turnover. High turnover rates can strain resources and time, requiring constant advertising, screening, and preparation of units for new occupants.
Vacancy exposure is another concern. With no available data on days on market (DOM), it's difficult to gauge how long properties might remain unoccupied. Prolonged vacancies can severely impact cash flow, especially when maintenance costs and property management fees continue to accrue without rental income.
Deferred maintenance poses a substantial threat due to the relatively low median income of $57,404 compared to the typical home value of $203,249. Tenants with limited financial resources may struggle to maintain properties in optimal condition, potentially leading to significant repair needs over time. Landlords must be prepared to invest in regular upkeep to ensure compliance with housing standards and to preserve property value.
Despite these challenges, the 15.6% renter share in ZIP 49765 indicates a high concentration of renters, which typically correlates with greater demand for Section 8 vouchers. A dense population of renters can mitigate some risks by ensuring a steady pool of potential tenants who are likely to qualify for assistance programs.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.