Location: Keweenaw County, MI | Metro: Houghton County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $970 for ZIP 49913 in fiscal year 2026 will sufficiently cover the mortgage on a home priced at $126,151. To address this, it's important to consider the typical mortgage payment for a property of that value. Assuming a 30-year fixed-rate mortgage at a modest interest rate of 4%, the monthly mortgage payment would be around $600, leaving ample room for maintenance, taxes, and other expenses within the $970 FMR.
The second objection could be about the renter demand in ZIP 49913, given that only 20.2% of the housing units are rented. While this percentage is relatively low, it still indicates a significant number of renters. With a total population of approximately 2,000, this means there are over 400 rental units in the area. This provides a stable base of potential tenants for landlords and small-portfolio investors.
A third concern might be whether the voucher program will keep pace with the market rents, currently estimated at $699. Although the data does not provide a direct comparison of voucher amounts to market rents, the FMR of $970 suggests that the voucher program is designed to cover a substantial portion of the typical rental cost. However, the exact amount of vouchers available and their alignment with market rents would require further investigation into local housing authority programs and policies.
In summary, while there are valid concerns regarding mortgage coverage, renter demand, and voucher adequacy, the data suggests that ZIP 49913 presents a feasible investment opportunity for those willing to delve deeper into local market specifics and trends.
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.