Location: Emmet County, MI | Metro: Cheboygan 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 | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $261,248 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 49769 is centered around the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $1,210, while the Census ACS reports the market rent at $1,016. This creates a gap of $194, or approximately 16%, where landlords can benefit from higher rental incomes compared to the open-market rates.
The disparity between FMR and market rent makes ZIP 49769 an attractive location for voucher tenants, turning it into a yield play for landlords. With 21.9% of residents being renters, there's a notable demand for affordable housing options. The median home value in the area is $247,515, indicating a relatively stable housing market. However, the median income of $67,558 suggests that many residents may struggle to afford housing at market rates without assistance.
In this context, landlords who accept Section 8 vouchers can expect to receive a higher rent amount than what the open market offers. This is because the government aims to ensure that housing costs do not exceed 30% of a household's income. Therefore, the FMR is set higher to accommodate these standards and provide adequate compensation to landlords, making it financially advantageous to house voucher tenants.
It's important to note that while the higher FMR can lead to increased yields, landlords must also consider the administrative aspects of managing Section 8 properties. These include regular inspections, compliance with HUD standards, and potential delays in receiving payments. Despite these considerations, the financial incentive of a $194 monthly increase per unit makes it a compelling investment strategy in ZIP 49769.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.