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 | $850 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,480 | $184,218 | 0.8% | C |
U.S. Census Bureau data (2024)
The ZIP code 49802 is situated in a small town environment with a population of 5,975 residents. The area has a relatively low rental rate at 20.2%, indicating that a majority of the inhabitants prefer homeownership, which is supported by the median home value of $145,995. The median income in this ZIP code stands at $62,209, suggesting a middle-class community where most individuals can afford to buy homes rather than rent.
When it comes to rental economics, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,100. However, the actual market rent, according to the Census ACS, is $917, showing a discrepancy between the government's valuation and the current market conditions. This difference implies that there might be an opportunity for landlords who are willing to manage properties actively, as they could potentially capture the higher FMR rates through Section 8 vouchers.
The question then becomes whether this ZIP code is suitable for a hands-off voucher operator or requires a hands-on approach for a value-add buyer. Given the lower market rent compared to the FMR, a hands-off operator might struggle to attract tenants at the higher voucher rates. Conversely, a hands-on value-add buyer could find success by improving property quality and positioning it to appeal to tenants seeking to utilize their Section 8 vouchers. Such an investor would need to ensure that the renovated properties align with the voucher program’s requirements and can command rents closer to the FMR of $1,100.
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.