Location: Ontonagon County, MI | Metro: Ontonagon County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 49953, located in Ontonagon County, MI, presents a unique opportunity for real estate investors. The HUD Fair Market Rent (FMR) for the area is set at $970 per month for fiscal year 2026, which is significantly higher than the current market rent of $538, based on recent Census ACS data.
This disparity means that voucher tenants can cashflow comfortably at the HUD FMR rate. Landlords who accept Section 8 vouchers will find that their rental income is more than double the average market rent, providing a substantial buffer against potential financial risks.
To further analyze the investment potential, consider the median home value in ZIP 49953, which stands at $144,283. This yields a rent-to-price ratio of approximately 0.75%, indicating that the cost of renting is relatively low compared to the cost of buying a home in the area. This could suggest that the local real estate market might be undervalued, offering opportunities for appreciation in the future.
Note that the median days on market (DOM) and the percentage of homes that have experienced price cuts are not available, but these factors would typically influence the rent-versus-buy decision-making process. In the absence of such data, it's important to focus on other key metrics when assessing the market.
The strongest angle for investors in this market is cashflow. Given the significant gap between HUD FMR and the actual market rent, landlords can expect to generate strong positive cashflow from properties occupied by voucher holders, making ZIP 49953 an attractive location for Section 8 investments.
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.