Location: Houghton County, MI | Metro: Houghton County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
U.S. Census Bureau data (2024)
The median income in ZIP code 49934 stands at $47,386, which places significant constraints on the average household's ability to afford the market rate rent of $1,047. To put this into perspective, a household earning the median income would spend nearly half of their annual earnings on rent alone if they were to pay the market rate. This highlights a substantial affordability gap for renters in this area.
In contrast, the Federal Market Rent (FMR) standard for voucher payments in the metro area for fiscal year 2026 is set at $970. This means that families using vouchers can find housing at a more affordable rate, spending approximately 20% of their income on rent. The difference between the market rate and the voucher payment rate is $77 per month, indicating a notable cost-saving benefit for voucher recipients.
With only 3.6% of the 772 total population being renters, the competition among landlords for tenants is relatively low. However, the limited number of renters suggests that landlords must carefully consider their pricing strategy to attract and retain tenants. Offering rental rates closer to the FMR could be a strategic advantage, especially since it aligns with the financial capabilities of the local renters.
The takeaway for landlords is clear: while charging the market rate of $1,047 might seem lucrative, it could limit your tenant pool significantly given the local median income. Opting for a voucher-friendly approach, setting rates around the FMR of $970, could ensure steady occupancy and better alignment with the economic reality faced by renters in ZIP 49934. This strategy not only supports affordability but also taps into a reliable source of income through the voucher program, mitigating risks associated with cash-paying tenants who might struggle to meet such high monthly rent demands.
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.