Location: Marquette County, MI | Metro: Baraga 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 | $780 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $228,108 | 0.49% | F |
| 3BR | $1,320 | $316,851 | 0.42% | F |
U.S. Census Bureau data (2024)
Michigamme, MI, located in ZIP code 49861, is a sparsely populated rural neighborhood with only 523 residents. The area is predominantly owned by homeowners, with only 2.3% of the population renting their homes. This low rental rate suggests a strong sense of community and ownership among the residents. The median household income in this ZIP code is $61,875, indicating a middle-class community where most families can afford to own rather than rent. The median home value stands at $207,252, which reflects the modest cost of living in this rural setting.
The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $970. However, the lack of available market rent data indicates a minimal rental market presence. Given the low percentage of renters and the absence of robust market rental data, it's challenging to compare the FMR with actual market rents. This scenario suggests that the rental market in Michigamme is not well-developed, and the demand for rental properties might be limited.
For an investor considering the Section 8 housing voucher program in ZIP 49861, the characteristics of the neighborhood suggest a better fit for a hands-off operator rather than a hands-on value-add buyer. The low number of renters and the high proportion of homeowners indicate that there isn't significant potential for increasing rental occupancy through aggressive property management strategies. Instead, an investor should focus on maintaining a few rental properties that qualify for the Section 8 program, ensuring they meet the necessary standards and provide stable income without the need for extensive renovations or marketing efforts.
In summary, Michigamme, MI, in ZIP 49861, offers a unique investment opportunity for those interested in Section 8 properties. The neighborhood's economic profile supports a conservative approach to rental investment, favoring simplicity and reliability over complex value-add strategies. With a median income of $61,875 and a median home value of $207,252, the area is likely to attract tenants who benefit from the $970 FMR for a two-bedroom unit, making it a suitable location for hands-off operators looking for steady returns.
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.