Location: Alger County, MI | Metro: Alger County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
U.S. Census Bureau data (2024)
The ZIP code 49862, located within the Alger County, MI metro, presents a unique profile when compared against typical ZIP codes within the same region. With a Fair Market Rent (FMR) of $1,130 for fiscal year 2026, it stands above the average market rent of $711, indicating that it is positioned in a higher cost bracket for rental properties.
However, the median home value of $198,263 is notably lower than what might be expected for a ZIP code with such a high FMR. This suggests that 49862 could be considered a value pocket within its metro area. Value pockets are areas where the cost of owning property is relatively low compared to the cost of renting, making them attractive for both tenants seeking affordable housing options and landlords looking to maximize their investment returns.
The renter share of 19.6% is also a key figure to consider. Typically, a higher renter share can indicate a greater demand for rental properties, which is beneficial for landlords. However, the disparity between the FMR and the market rent, combined with the lower home value, suggests that 49862 may be an area where there is a significant number of renters who are eligible for federal housing assistance programs like Section 8.
This combination of factors—high FMR, below-average home values, and a substantial renter share—creates a scenario where 49862 could be particularly appealing for landlords participating in the Section 8 program. The higher FMR ensures that landlords receive a decent reimbursement rate for rental assistance, while the lower home values mean that they can purchase properties at a lower cost, potentially increasing their profit margins.
In conclusion, ZIP code 49862 appears to be a value pocket within the Alger County, MI metro, offering a blend of opportunities for both tenants and landlords. For small-portfolio investors, this ZIP code could represent a sweet spot for Section 8 investments due to its favorable balance of higher rental subsidies and lower property acquisition costs.
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.