Location: Ontonagon County, MI | Metro: Ontonagon County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The ZIP code 49910 is situated in a small, tight-knit neighborhood characterized by its modest size, with a total population of just 298 residents. The area has a relatively low percentage of renters at 9.5%, indicating a community where homeownership is prevalent. The median household income here stands at $39,583, which suggests a middle-class environment. The median home value in this ZIP is $163,135, reflecting an affordable housing market.
When it comes to rental economics, the Fair Market Rent (FMR) set by the government for the metro area in fiscal year 2026 is $1,080. However, the actual market rent, according to Census ACS data, is significantly lower at $708 per month. This discrepancy between the government's FMR and the local market rent can present both opportunities and challenges for investors.
The low rent-to-income ratio and the gap between FMR and market rent indicate that there could be potential for higher returns on investment through Section 8 properties. For hands-off operators who prefer stable, government-backed tenants, this ZIP code could be attractive. Section 8 vouchers ensure a steady stream of income, with minimal risk of default since payments are guaranteed by the federal government.
On the other hand, for hands-on investors looking to add value, the low market rents might suggest room for improvement. By investing in property upgrades or management practices that increase the market rent closer to the FMR, these investors could potentially command higher rents, benefiting from the voucher program while also capturing additional market value.
In conclusion, ZIP 49910 presents itself as a suitable location for both hands-off and hands-on Section 8 investors. Hands-off operators will find stability and predictability in their cash flow, while hands-on investors can seek to enhance their properties' value and market appeal.
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.