Location: Marquette County, MI | Metro: Marquette 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 | $710 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $227,269 | 0.45% | F |
| 3BR | $1,230 | $245,473 | 0.5% | F |
| 4BR | $1,500 | $258,274 | 0.58% | F |
| 5BR | $1,740 | $163,917 | 1.06% | B |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP 49841 (Gwinn, MI) provides insight into the potential returns for landlords and small-portfolio investors. Using the Fair Market Rent (FMR) for a 2-bedroom apartment, which is set at $970 annually for Fiscal Year 2026, and comparing it to the market rent of $767 based on Census ACS data, we can derive the gross yield for both scenarios.
First, let's calculate the gross yield using the FMR. The annualized rent at $970 implies a gross yield of approximately 5.3%. This is derived by dividing the annual rent ($970) by the median home value ($182,090). In formula terms, it is $970 / $182,090 = 0.0053, or 5.3%.
Next, we'll consider the market rent scenario. At $767 annually, the gross yield drops significantly to about 4.2%. Again, this is calculated by dividing the annual market rent ($767) by the median home value ($182,090), resulting in $767 / $182,090 = 0.0042, or 4.2%.
The difference between these two yields is substantial, with the FMR scenario offering a higher gross yield. However, the reality of rental markets must be considered. Gwinn, MI has a renter density of 28.8%, indicating that a significant portion of the population owns homes rather than renting. This factor could influence the likelihood of achieving the higher FMR-based rent versus the lower market rent.
Additionally, the N/A-day DOM (Days on Market) suggests that there is limited data available regarding how quickly properties are rented out. This could indicate either a stable rental market where vacancies are rare, or an unstable market where rental trends are less predictable. Given the lack of specific DOM data, it is prudent to rely on the more conservative market rent figure when assessing potential investment returns.
In conclusion, while the FMR scenario presents a more attractive gross yield at 5.3%, the actual market conditions suggest that the 4.2% yield based on market rent is a more realistic expectation for landlords and small-portfolio investors in ZIP 49841. The lower gross yield reflects the true rental environment and aligns with the observed renter density and median home values.
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.