Location: Ontonagon County, MI | Metro: Ontonagon County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
The ZIP code 49925 presents several challenges for potential Section 8 landlords and small-portfolio investors. One significant issue is tenant turnover, which can be higher when comparing the market rent to the Fair Market Rent (FMR) of $1,260 for the fiscal year 2026 in the metropolitan area. This discrepancy might lead to frequent changes in occupancy, impacting the stability of rental income.
Vacancy exposure is another concern, especially considering the days on market (DOM) data is currently unavailable. A prolonged period before securing a tenant can result in lost income and increased carrying costs, such as mortgage payments and property taxes.
Deferred maintenance exposure also poses a risk, given the median income of $56,250 in the area. With no specific data on typical home values, it's critical to note that lower incomes may limit tenants' ability to contribute to maintenance costs beyond their rent, potentially leaving landlords responsible for any necessary repairs or improvements.
Despite these risks, the high renter density in ZIP 49925, with a 13.0% renter share, suggests robust demand for housing. This high concentration of renters often translates into a greater number of Section 8 voucher holders seeking accommodation, providing a steady stream of qualified tenants. The presence of these vouchers can mitigate some financial uncertainties, as they ensure a reliable source of rental income.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.