Section 8 Fair Market Rent (FMR) for ZIP 49938 - 2027

Location: Gogebic County, MI | Metro: Gogebic County, MI

Investment Score for ZIP 49938

B
Monthly Rent (2BR)
$1,020
Median Price (2BR)
$92,864
1% Rule
1.1%
Annual Yield
13.18%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$710
1 Bedroom$820
2 Bedrooms$1,020
3 Bedrooms$1,410
4 Bedrooms$1,500
5 Bedrooms$1,740
6 Bedrooms$1,949
7 Bedrooms$2,105
8 Bedrooms$2,210

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,020 $92,864 1.1% B
3BR $1,410 $112,707 1.25% A
4BR $1,500 $133,161 1.13% B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
7,460
Median Household Income
$46,606
Housing Units
4,754
Renter Percentage
22.6%
Occupancy Rate
79.1%
Renter Occupied
849

ZIP code 49938, located in Ironwood, Michigan, stands out within Gogebic County due to its unique demographic and economic characteristics. With a population of 7,460 residents, 22.6% of whom rent their homes, it reflects a community where homeownership remains a significant part of the housing landscape. The median income in the area is $46,606, which is notably lower than the median home value of $105,105. This suggests that while there is a strong inclination towards owning property, the cost of doing so is relatively high compared to local incomes.

The economics of Section 8 vouchers in ZIP 49938 further illuminate the housing situation. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $970, whereas the current market rent, according to the Census Bureau's American Community Survey (ACS), is $628. This disparity indicates that landlords participating in the Section 8 program can expect higher rental income relative to the typical market rate. However, it also implies that tenants receiving vouchers might struggle to find units that match their subsidy, potentially leading to competition among available rental properties.

The data signature for ZIP 49938 reads as stable. Despite the modest median income, the high median home value and the relatively low percentage of renters suggest a community that values homeownership and has maintained a steady housing market. The gap between the FMR and the actual market rent presents an opportunity for landlords to secure more favorable rental terms through participation in the Section 8 program, while also ensuring that rental units remain affordable for those who depend on government assistance.

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.