Section 8 Fair Market Rent (FMR) for ZIP 49902 - 2027

Location: Iron County, MI | Metro: Iron County, MI

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$720
1 Bedroom	$780
2 Bedrooms	$1,010
3 Bedrooms	$1,210
4 Bedrooms	$1,340
5 Bedrooms	$1,554
6 Bedrooms	$1,740
7 Bedrooms	$1,879
8 Bedrooms	$1,973

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

215

Median Household Income

$39,115

Housing Units

148

Renter Percentage

12.2%

Occupancy Rate

77.7%

Renter Occupied

The Section 8 cap rate analysis for ZIP code 49902 provides a critical view into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in the metro area for fiscal year 2026 is set at $970 per month. This figure annualizes to $11,640, offering a benchmark for rental income.

To calculate the implied gross yield, we must first understand the median home value in the area. Unfortunately, the median home value for ZIP 49902 is currently not available, leading to two distinct scenarios for analysis.

Scenario 1: Using the FMR of $970 per month ($11,640 annually), the implied gross yield can be calculated once the median home value is known. For instance, if the median home value were hypothetically $200,000, the gross yield would be approximately 5.82%. However, since the actual median home value is not provided, this calculation serves only as an illustrative example.
Scenario 2: In the absence of market rent data, we cannot directly compute the gross yield based on market conditions. This scenario underscores the importance of local knowledge and the necessity to gather current market rent data to accurately assess potential yields.

Given the 12.2% renter density in ZIP 49902, it's clear that the majority of homeowners are likely not relying solely on rental income. The Days on Market (DOM) data is also not available, which typically indicates how quickly properties are rented out. Without this information, it's challenging to predict the liquidity of rental investments in the area.

The FMR-based scenario offers a tangible starting point for analysis. However, for a more accurate assessment, investors should focus on obtaining current market rent data and the median home value. These figures will provide a clearer picture of the gross yield and the overall viability of Section 8 investments in ZIP 49902.

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.