Location: Delta County, MI | Metro: Delta 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $148,941 | 0.68% | D |
| 3BR | $1,360 | $193,611 | 0.7% | D |
| 4BR | $1,700 | $220,444 | 0.77% | D |
U.S. Census Bureau data (2024)
If a landlord is considering buying a property in ZIP code 49829 (Escanaba, MI) for Section 8 purposes, they should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $970 cover the debt service on a property valued at $177,635?
It depends. To determine if the FMR covers the debt service, you need to know the specific financing terms, including interest rate and loan term. Assuming a typical scenario with a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment would be approximately $930. In this case, the FMR of $970 would just barely cover the debt service.
2) How does the market rent of $661 compare to the FMR?
The market rent of $661 is below the FMR of $970. This suggests that there could be potential for higher rental income if the property qualifies for Section 8, which would be beneficial for landlords looking to maximize their returns.
3) Is the demand sufficient with 29.1% of residents being renters and the day DOM (days on market) being N/A?
Yes, the demand appears to be sufficient. With 29.1% of residents being renters, there is a notable portion of the population seeking housing. The N/A for days on market indicates that either there is no recent data available, or listings are moving quickly. Given the percentage of renters and the implication that properties are selling or renting quickly, there is likely enough demand to support a Section 8 property in this area.
Decision branches:
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.