Location: Gogebic County, MI | Metro: Gogebic County, MI
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,410 | $128,174 | 1.1% | B |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 49911 might raise several concerns regarding the feasibility of investing in properties under the Section 8 program. Here's a direct look at those concerns using available data.
Objection 1: Will the Fair Market Rent (FMR) of $970 for the metro area in fiscal year 2026 be sufficient to cover the mortgage on a home priced at $111,875?
The FMR of $970 needs to be compared against the expected monthly mortgage payment. Assuming a typical interest rate of around 4% and a 30-year fixed mortgage, the monthly payment on a $111,875 home would be approximately $530 without accounting for property taxes and insurance. This means that the FMR of $970 is more than adequate to cover the mortgage payment, leaving a surplus of roughly $440 per month to allocate towards other expenses such as property taxes, insurance, and maintenance. However, it's important to note that the actual mortgage amount can vary based on the down payment and the specific terms offered by lenders.
Objection 2: Is there enough rental demand at 22.3%?
The rental demand at 22.3% suggests that nearly one-quarter of the housing units in ZIP 49911 are rented out. While this percentage might seem low compared to urban areas, it indicates a steady demand for rental properties. For an investor, this translates into a manageable number of potential tenants. The key metric here is the vacancy rate, which isn't provided in the data but is crucial to understand the competition and the ease of finding tenants. A lower vacancy rate would imply stronger demand and potentially easier property management. Investors should also consider the local job market and population trends to gauge future demand.
Objection 3: Will vouchers keep pace with market rents of $579?
The market rent of $579 is below the FMR of $970, indicating that the voucher amounts are likely sufficient to cover these rents. However, the critical point is whether the voucher program will adjust its payments to match any future increases in market rents. Historically, voucher programs have aimed to align with FMRs, but the exact pace of adjustment can vary. It's advisable to monitor local HUD announcements and budget updates to stay informed about any changes in voucher amounts. Additionally, the stability of funding sources for the voucher program must be considered, as cuts could affect the ability of tenants to pay their rent.
In summary, while the data provides some comfort in addressing the concerns over mortgage coverage and current rental demand, it does not fully answer questions about future adjustments in voucher amounts and the long-term stability of the program. These uncertainties should be factored into any investment decision.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.