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 ZIP code 49960 presents several challenges for landlords considering participation in the Section 8 program. First, tenant turnover is a significant concern due to the disparity between market rents and the Fair Market Rent (FMR) of $970 for fiscal year 2026. This gap can make it difficult to attract and retain tenants who qualify for vouchers. Second, vacancy exposure is a critical risk factor, especially since the average days on market (DOM) is unavailable, indicating potential volatility in the local rental market. Third, deferred maintenance is a notable issue, particularly when the median income of $44,018 is considered alongside the unknown typical home value. Landlords must be prepared to invest in property upkeep without the assurance of higher rents to cover these costs.
However, these risks are tempered by the high concentration of renters in the area, represented by the 1.9% renter share. In reality, this figure likely understates the true proportion of renters, as it may include homeowners and other housing types. High renter density typically correlates with higher demand for Section 8 vouchers, which can stabilize occupancy rates and provide a steady stream of income. The robust demand for subsidized housing can offset some of the financial uncertainties associated with lower rents and maintenance obligations.
In conclusion, despite the potential pitfalls of tenant turnover, vacancy exposure, and deferred maintenance, the strong presence of renters in ZIP 49960 suggests a moderate risk profile for first-time Section 8 landlords. This balance of risks and opportunities makes it a viable option for those willing to manage the inherent challenges.
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.