Location: Keweenaw County, MI | Metro: Keweenaw County, MI
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $311,923 | 0.32% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 49950 in Mohawk, MI, presents several challenges that must be carefully considered. First, tenant turnover is likely to be higher due to the disparity between the market rent of $720 and the Fair Market Rent (FMR) of $970 for FY 2026 in the metropolitan area. This difference suggests that tenants might struggle to cover their portion of the rent, leading to frequent moves.
Vacancy exposure is another significant concern. The average days on market (DOM) is not available, which makes it difficult to predict how long a property might remain vacant between tenants. A prolonged vacancy can lead to financial losses, especially if maintenance costs are not covered during this period.
The deferred-maintenance exposure is substantial given the typical home value of $226,003 and the median income of $53,250. These figures indicate that residents may have limited funds for home repairs, placing the burden on landlords to maintain properties at a high standard. The cost of upkeep could be considerable, particularly for older homes that require more frequent attention.
However, these risks are somewhat mitigated by the high renter share of 8.2%. High renter density typically translates into greater demand for housing vouchers, which can stabilize occupancy rates and provide a reliable source of rental income. Landlords who are willing to manage the challenges of tenant turnover and maintenance can benefit from the consistent demand for affordable housing in the area.
A final consideration is the local economic environment. With a median income of $53,250, many residents may rely on Section 8 vouchers to afford housing. While this creates a stable pool of potential tenants, it also underscores the importance of maintaining properties to meet the requirements of the program. Failure to do so can result in penalties or loss of eligibility for voucher tenants.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.