Location: Menominee County, MI | Metro: Menominee County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 49887 are significant. Firstly, tenant turnover is a critical issue, as the market rent stands at $696 compared to the Fair Market Rent (FMR) of $970 for the fiscal year 2026 in the metropolitan area. This disparity indicates that tenants might seek higher rents elsewhere, leading to frequent changes in occupancy. Secondly, the vacancy exposure is substantial due to the lack of data on days on market (DOM), which suggests difficulty in predicting how long properties will remain vacant. Lastly, there is a notable deferred-maintenance exposure. The typical home value in the area is $184,891, while the median income is only $58,375, making it challenging for residents to afford necessary repairs and upkeep, thus potentially increasing maintenance costs for landlords.
However, these risks must be weighed against the high concentration of renters in the area, with 14.2% of the population being renters. High renter density typically translates into higher demand for housing vouchers, which can stabilize cash flow and reduce vacancy periods. The presence of Section 8 tenants can also help mitigate the impact of high maintenance costs, as the program ensures timely rent payments and regular inspections that may prompt quicker repairs.
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.