Location: Dickinson County, MI | Metro: Dickinson 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 | $880 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $140,466 | 0.72% | D |
| 3BR | $1,260 | $208,846 | 0.6% | D |
| 4BR | $1,480 | $244,128 | 0.61% | D |
U.S. Census Bureau data (2024)
ZIP code 49801 encompasses a portion of Iron Mountain, Michigan, characterized by a relatively stable residential community. With a total population of 11,860, the area is predominantly owner-occupied, as only 18.4% of residents are renters. The median household income stands at $67,337, indicating a middle-class neighborhood where residents have sufficient financial means to support their living expenses. The median home value in this ZIP code is $184,478, which reflects a modest property market that is accessible to many families.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $970. However, the current market rent, according to the Census ACS, is $747. This discrepancy between the FMR and the actual market rent suggests an opportunity for investors to leverage the higher voucher amounts to cover operational costs and potentially generate a profit margin.
Given these metrics, ZIP 49801 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area offers a reliable tenant base with the government guaranteeing a certain level of income through housing vouchers. The lower market rent compared to the FMR means that landlords can benefit from the subsidy without needing to actively manage the properties beyond routine maintenance. On the other hand, value-add buyers could find opportunities to improve the quality of rental units, thereby justifying rents closer to the FMR. This strategy would require more active management but could lead to higher returns over time.
To summarize, Iron Mountain's ZIP 49801 presents a balanced investment environment, with a mix of owner-occupied homes and rental properties, supported by a moderate income bracket and a favorable gap between FMR and market rent. Both passive and active investors can find suitable strategies here, depending on their management preferences and risk tolerance.
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.