Location: Delta County, MI | Metro: Delta County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
U.S. Census Bureau data (2024)
The ZIP code 49864 presents several challenges for landlords considering participation in the Section 8 program. Firstly, the tenant turnover rate is unknown due to the lack of reported market rent data. However, the Fair Market Rent (FMR) for the area is set at $1,410 per month for fiscal year 2026, which can serve as a benchmark for rental pricing. This uncertainty in market rent can lead to difficulties in setting competitive rates that attract tenants while remaining within the program guidelines.
Vacancy exposure is another significant risk, as the days on market (DOM) for properties in this area is not available. A longer DOM can indicate higher vacancy rates, which would be detrimental to a landlord's cash flow. Given the absence of specific data on DOM, it is advisable to assume a conservative estimate to prepare for potential extended vacancy periods.
Deferred maintenance is a notable concern, especially when considering the median income of $103,750 in the area. While the typical home value is not specified, the median income suggests that residents might have the financial capacity to maintain their homes adequately. However, landlords should still be cautious about the condition of the properties they plan to include in the Section 8 program, as substandard conditions can lead to inspections and penalties from housing authorities.
Despite these risks, the ZIP code 49864 has a 0.0% renter share, which is unusually low and suggests a high concentration of homeowners. Typically, a high renter density correlates with greater demand for housing vouchers. In this case, however, the low renter share might imply less competition for Section 8 vouchers among tenants, potentially leading to fewer applications and slower leasing processes.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.