Location: Presque Isle County, MI | Metro: Alpena County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The analysis of ZIP 49776, located in Presque Isle County, MI metro, reveals several key points that are crucial for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the area is set at $970 for fiscal year 2026. However, the current market rent, as per Census ACS data, stands at only $491. This significant disparity indicates that landlords might struggle to achieve rents that meet the FMR standards, suggesting that the rent math does not work favorably in this ZIP code.
Secondly, regarding the affordability of acquisition, the median home value in ZIP 49776 is $204,272. While this figure may seem reasonable, the lack of available data on days on market (DOM) and the percentage of homes requiring price cuts before selling suggests that there could be challenges in acquiring properties quickly or at full asking price. This uncertainty should be considered when planning investments in this area.
Finally, evaluating tenant demand, ZIP 49776 has a total population of 1,866, with 12.6% being renters. Given the small population size, the number of potential tenants is limited. This low renter share implies a smaller pool of individuals seeking rental housing, which could impact the occupancy rates and overall demand for rental properties in the area.
In summary, while the median home value in ZIP 49776 is relatively low at $204,272, the current market rent at $491 falls far short of the FMR of $970, indicating poor rent math. Additionally, the limited availability of data on property acquisition metrics and the low renter share suggest that acquiring properties and maintaining tenant demand may present significant challenges. Therefore, this ZIP code does not appear to be a favorable investment opportunity for landlords and small-portfolio investors looking for strong returns and high occupancy rates.
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.