Location: Houghton County, MI | Metro: Houghton County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 49905 within Houghton County, MI metro, reveals several key points that landlords and small-portfolio investors should consider before investing in the area.
The first question is whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,140, while the current market rent based on Census ACS data is $1,006. This indicates that landlords can expect to charge slightly below the FMR, which could be a disadvantage if aiming to maximize rental income. However, the difference is modest, suggesting that the rent math is still favorable, though not optimal.
Regarding the affordability of acquisition, the median home value stands at $201,555. This figure is relatively low, making it an attractive option for investors looking to enter the market without significant capital outlay. However, the lack of data on days on market (DOM) and the percentage of homes requiring price cuts limits the ability to assess the ease of acquiring properties at their listed values. Investors should conduct further due diligence to understand local real estate trends and negotiation possibilities.
The third point is tenant demand. With a total population of 2,281 and a renter share of 12.2%, the potential pool of tenants is limited. This suggests that competition among landlords for rental units may be high, and attracting and retaining tenants could require additional effort and possibly concessions on rent pricing.
Verdict: ZIP code 49905 offers a mix of opportunities and challenges for real estate investment. The acquisition cost is affordable, but the limited tenant base and slightly lower market rents compared to FMR indicate that success will depend on careful property selection and competitive management practices. Landlords must balance the lower median home value against the smaller pool of potential renters to ensure profitability and sustainability in their investments.
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.