Location: Alger County, MI | Metro: Alger County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The ZIP code 49816 presents an interesting mix of yield potential and market stability, making it a zone that leans towards providing steady cash flow rather than being a high-yield/low-stability flip-style market. This classification is driven by several key figures.
Firstly, the yield analysis shows a significant gap between the Fair Market Rent (FMR) set at $1,000 per month for the metro area in fiscal year 2026 and the current market rent of $713. This indicates a strong potential for rental income growth, suggesting landlords can increase rents over time to meet or exceed the FMR without immediately alienating tenants. The lack of home value data implies limited opportunities for flipping properties for profit, thus steering the focus towards long-term rental yields.
Moving on to stability, the ZIP code has a relatively low percentage of renters at 3.2%. This figure, while seemingly small, actually points to a stable tenant base. Typically, areas with a higher proportion of renters might experience more frequent turnovers, which can impact the stability of cash flow. Additionally, the average household income of $70,750 provides a solid financial cushion for tenants, reducing the risk of default on rent payments. The absence of data regarding days on market (DOM) suggests a balanced market where neither buyers nor sellers dominate, further supporting the notion of stability.
Given these specifics, 49816 is best classified as a steady-cashflow zone. The potential for rental income to grow towards the FMR of $1,000 per month offers attractive returns, while the low percentage of renters and substantial average income indicate a market that is resistant to volatility and capable of sustaining consistent cash flows. Landlords and small-portfolio investors should find this environment conducive to building a reliable source of rental income with less emphasis on short-term speculative gains.
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.