Location: Alpena County, MI | Metro: Alpena County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 49766 (Ossineke, MI) highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $970, while the current market rent based on Census ACS data is $746. This creates a $224 difference, representing a 30% gap between the FMR and the market rent.
This gap makes voucher tenants an attractive option for landlords and small-portfolio investors. With the FMR exceeding the market rent, voucher tenants can provide a higher yield on investment properties. Landlords can benefit from guaranteed payments through the voucher system, which are typically higher than the prevailing market rates.
In the broader context of ZIP 49766, the area has a relatively low percentage of renters at 8.7%, with a median home value of $204,191. The median income in the area is $61,346, indicating a middle-income community. Given these factors, the opportunity to lease properties at rates closer to the FMR can be particularly beneficial for investors seeking stable returns.
Landlords should note that the higher FMR does not necessarily translate to increased profitability if maintenance and vacancy rates are not managed effectively. However, the consistent payment structure provided by the Section 8 program can mitigate risks associated with non-payment and delinquency, offering a reliable source of income.
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.