Location: Ontonagon County, MI | Metro: Houghton County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 49967 might have several concerns regarding the feasibility of investing in this area. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $990 (for the fiscal year 2026) cover the mortgage on a $146,212 home?
The FMR of $990 does not directly indicate whether it will cover the mortgage payments on a home valued at $146,212. To determine if the FMR can cover the mortgage, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $146,212 home would be approximately $785. The FMR of $990 is sufficient to cover the mortgage payment, leaving room for other expenses such as property taxes, insurance, and maintenance. However, the data does not provide specifics on these additional costs, which are crucial for a complete financial analysis.
Objection 2: Is there enough renter demand at 10.8%?
The percentage of renters in ZIP code 49967 stands at 10.8%. This figure suggests that while rental demand exists, it is relatively low compared to areas with higher percentages of renters. Landlords and small-portfolio investors must weigh this against the potential rental income. A lower renter percentage could mean fewer tenants, but it also implies less competition among landlords. The key is to assess the local housing market dynamics and understand how many units are currently occupied by renters and how many are available. The data provided does not give a comprehensive view of the rental market size or vacancy rates, which are important for gauging demand.
Objection 3: Will vouchers keep pace with $638 market rents?
The market rent of $638 is below the FMR of $990, indicating that voucher holders might find it easier to afford homes in this ZIP code. However, whether vouchers will keep pace with market rents depends on the federal funding and local administration of the voucher program. The data does not specify the current value of vouchers or any projected increases. It is essential to research the historical trends of voucher values in the area and compare them with the local cost of living adjustments. If vouchers historically have increased in line with inflation and local rent growth, they should continue to support rental affordability at around $638. Otherwise, landlords might face challenges in attracting tenants who rely solely on vouchers.
In summary, while the data provides some insights into the economic viability of ZIP code 49967 for rental investments, it lacks detailed information on certain critical aspects such as property taxes, insurance costs, and historical trends of voucher values. Investors should conduct further research to fill these gaps before making informed decisions.
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.