Location: Chippewa County, MI | Metro: Chippewa 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 | $720 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $215,032 | 0.58% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,070 for ZIP code 49783 can sufficiently cover the mortgage payments on a home valued at $190,673. To address this concern, we must consider the typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 5%, the monthly mortgage payment for a home priced at $190,673 would be approximately $1,020, based on recent financial calculators. This means that the FMR does indeed cover the mortgage payment, leaving a small buffer for maintenance and other costs.
The second objection could be regarding the level of renter demand in the area, which stands at 32.8%. While this percentage may seem low, it's important to note that rental demand is influenced by various factors such as job availability, housing stock, and demographic trends. A 32.8% rental rate suggests that there is a reasonable number of renters in the area, but it also implies that the market may be somewhat competitive. Landlords should focus on maintaining high-quality properties to attract and retain tenants.
Lastly, an investor might be concerned about whether voucher amounts will keep up with the market rents, which currently stand at $795. The voucher amount in ZIP 49783 is set at $695, which is below the market rent. However, the Housing Choice Voucher Program is designed to adjust its payments periodically based on the local market conditions. If the program adjusts its voucher amounts to reflect the actual market conditions, then it would likely cover the $795 rent. Until then, landlords accepting vouchers may need to subsidize the difference or seek non-voucher tenants.
In conclusion, while the data shows that the FMR can cover the mortgage payments and indicates a moderate rental demand, concerns over voucher amounts are valid given the current discrepancy between voucher values and market rents. It's crucial for investors to monitor both local and federal policy changes that could affect these dynamics.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.