Location: Otsego County, MI | Metro: Charlevoix County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 49795, located in Otsego County, MI metro, reveals a favorable environment for those seeking stable rental income. The HUD Fair Market Rent (FMR) for the area is set at $1,140 for fiscal year 2026, which is notably higher than the market rent of $966 as reported by the Census ACS. This discrepancy indicates that voucher tenants will cashflow positively at the FMR rate, providing landlords with a reliable source of income above typical market rates.
To further evaluate investment potential, consider the median home value of $204,867 in the area. The rent-to-price ratio, calculated using the HUD FMR, stands at approximately 0.065 (or 6.5%), indicating that the property values are relatively high compared to rental yields. However, this does not detract from the primary benefit of positive cashflow for Section 8 investors.
The dynamics between renting and buying are less relevant in this analysis due to the lack of specific data on median days on market (DOM) and the percentage of price cuts. Nevertheless, the absence of these figures suggests a relatively stable housing market, where neither buyers nor sellers are experiencing significant volatility.
The strongest angle for investors in ZIP 49795 is cashflow. Given the higher FMR compared to market rents, landlords can expect consistent and above-average rental income from voucher tenants, making it an attractive option for small-portfolio investors looking for steady returns.
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.