Location: Alger County, MI | Metro: Alger County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
U.S. Census Bureau data (2024)
The median income in ZIP code 49839 stands at $47,292. Given the lack of specific market rate rental data for this area, we must rely on the Fair Market Rent (FMR) figure provided by the Department of Housing and Urban Development (HUD), which is set at $1,060 per month for the metro area in fiscal year 2026. This FMR represents the typical rent for a two-bedroom apartment, which is often used as a benchmark for Section 8 housing vouchers.
To frame this from the renter's perspective, let's consider the financial implications. An individual earning the median income would have a monthly income of approximately $3,941 before taxes. HUD guidelines suggest that a household should spend no more than 30% of their income on housing costs. For the median earner in ZIP 49839, this translates to a maximum affordable rent of around $1,182 per month, which is slightly above the FMR of $1,060. However, it's important to note that this calculation does not take into account other expenses such as utilities, food, healthcare, and transportation, which significantly impact a household's ability to pay rent.
The ZIP code has a relatively low percentage of renters at just 4.5%, with a total population of 198. This indicates a limited rental market, which could mean higher competition among landlords for the available tenants. The affordability gap between the median income and the FMR suggests that while some households might be able to afford market-rate rents, others will likely depend on housing vouchers to cover their living expenses.
For landlords considering their strategy, focusing on voucher tenants could be a viable approach given the limited number of potential cash-paying renters. By accepting Section 8 vouchers, landlords ensure a steady and reliable source of income, albeit at the FMR rate of $1,060 per month for a two-bedroom unit. While this might be lower than market rates, it guarantees occupancy and avoids the risk of vacancies in a competitive and constrained rental environment.
The takeaway for landlords is that diversifying their tenant mix to include those who receive housing vouchers can be a strategic move to maintain occupancy rates. In ZIP 49839, where the rental market is tight and incomes are modest, being flexible with voucher acceptance can position landlords favorably against their competitors and secure long-term tenancy.
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.