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 | $710 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $188,781 | 0.64% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 49779 does not favor landlords. The Fair Market Rent (FMR) set at $970 for the metro area in fiscal year 2026 is significantly higher than the actual market rent of $698 as reported by the Census ACS. This discrepancy suggests that landlords might struggle to find tenants willing to pay the FMR, leading to potential vacancies or reduced rental income.
Acquisition of properties in ZIP 49779 is relatively affordable. The median home value stands at $178,218. However, the lack of data on days on market (DOM) and the percentage of homes with price reductions indicates that there is limited information on how quickly homes sell and at what price point. This could be due to a low volume of sales activity, which might also reflect on the overall property market dynamics.
Tenant demand in ZIP 49779 is modest. With a total population of 4,593, only 14.9% are renters. This means that there are approximately 680 potential renters in the area, which is a relatively small pool compared to the overall population. Given the low renter share, landlords may face challenges in attracting and retaining tenants, especially if they aim to charge closer to the FMR.
In summary, while the acquisition cost of properties in ZIP 49779 is reasonable, the mismatch between the FMR and market rent, along with the modest tenant demand, presents significant risks for landlords and small-portfolio investors. The area lacks sufficient renter population to support higher rents, making it less attractive for rental investments unless market conditions change to better align with the FMR expectations.
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.