Location: Presque Isle County, MI | Metro: Presque Isle 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 | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $2,100 |
| 5 Bedrooms | $2,436 |
| 6 Bedrooms | $2,728 |
| 7 Bedrooms | $2,946 |
| 8 Bedrooms | $3,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $337,752 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 49777 presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant concern, with the market rent at $950 falling short of the $1,330 Fair Market Rent (FMR) for the metro area in fiscal year 2026. This discrepancy suggests that landlords might struggle to attract and retain tenants willing to pay the higher FMR rate required by Section 8, leading to higher turnover and associated costs.
Vacancy exposure is another issue. The days on market (DOM) data is not available, which makes it difficult to predict how long a property might remain vacant between tenants. Given the potential for high turnover rates, this uncertainty increases the risk of extended vacancy periods, reducing rental income and increasing holding costs.
The deferred maintenance exposure is also notable. With a median income of $85,781 and no data on the typical home value, it's challenging to gauge the financial capacity of residents to maintain homes in good condition. This lack of information implies a higher risk of properties requiring significant repairs or upkeep, especially if tenants are financially strained despite their relatively high income.
However, these risks are somewhat mitigated by the high concentration of renters in the area. The 4.1% renter share indicates a dense population of potential tenants, many of whom are likely to have Section 8 vouchers. High renter density usually translates into robust demand for rental properties, which can help stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 49777 is moderate. While there are significant challenges related to tenant turnover and maintenance, the strong demand for rentals provides a counterbalance that can support steady occupancy and income generation.
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.