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 | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 49945 is poised for a period of stability and potential growth over the next 12-24 months, given the current median home value of $193,717. The fact that the percentage of listings reduced is currently marked as N/A suggests that sellers are maintaining their asking prices, indicative of a market where pricing power remains with the landlords and small-portfolio investors. This scenario is further reinforced by the median days on market (DOM) also being noted as N/A, which typically signals a brisk pace of sales, reducing the need for prolonged exposure of properties on the market.
On the rental side, the Federal Market Rent (FMR) for ZIP 49945 is projected at $970 for the fiscal year 2026, whereas the current market rate stands at $556 according to the Census ACS. This significant gap between the FMR and the actual market rate indicates a substantial opportunity for landlords to increase rents without losing tenants, assuming the local economy supports such increases. The higher FMR reflects the government's assessment of fair rental values, which often precedes market adjustments.
For long-term investors in ZIP 49945, the setup implies a solid appreciation thesis. The median home value, combined with the potential for rent increases, points towards a market that can sustain and possibly grow in value. As the rental market adjusts closer to the FMR, it will likely support increased property values, driven by higher demand and the ability to command higher rents. However, it is crucial to monitor local economic conditions, job growth, and migration patterns, as these factors will play a key role in how quickly and effectively the market narrows the gap between current rents and the FMR.
In summary, the combination of stable home values, the absence of price reductions, and the potential for rental increases presents a favorable environment for landlords and small-portfolio investors. The data suggests that maintaining or slightly increasing rental rates and holding onto properties could yield positive returns as the market continues to evolve.
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.