Location: Gogebic County, MI | Metro: Gogebic 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 | $790 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,560 | $433,488 | 0.36% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP code 49969 might raise several concerns regarding the feasibility of investing in this area, particularly when it comes to Section 8 properties. Here are some key objections and the data to address them.
Objection 1: Will Fair Market Rent (FMR) of $1,100 (for the metro area in fiscal year 2026) cover the mortgage on a $279,313 home?
The average mortgage payment for a $279,313 home can be estimated using typical interest rates and loan terms. Assuming a 30-year fixed-rate mortgage at an interest rate of 4%, the monthly principal and interest payment would be approximately $1,340. This amount exceeds the FMR by $240, indicating that FMR alone will not cover the mortgage payments. However, investors should consider additional income sources such as property tax abatements or other subsidies that may be available in the area.
Objection 2: Is there enough renter demand at 5.8%?
The 5.8% rental vacancy rate suggests a relatively low level of vacancy, which is generally favorable for landlords and small-portfolio investors. A lower vacancy rate indicates strong demand for rental properties. However, the data does not provide a complete picture of the number of renters in the area or their ability to pay higher rents. To fully assess demand, one would need to look into population growth trends and employment opportunities within ZIP 49969.
Objection 3: Will vouchers keep pace with $425 market rents?
The voucher amounts are adjusted annually based on HUD's Fair Market Rents (FMRs), which take into account local housing market conditions. If the FMR for ZIP 49969 is set at $1,100 for fiscal year 2026, it implies that vouchers should also increase to match this figure. Given the current market rent of $425, there appears to be room for growth, assuming the FMR accurately reflects future market conditions. However, the data does not specify if there are any caps on voucher amounts or if the increase will be immediate or gradual.
In conclusion, while the data presents some challenges, such as the FMR being insufficient to cover mortgage payments on its own, it also highlights positive aspects like a low vacancy rate suggesting strong demand. The future alignment of voucher amounts with market rents remains uncertain but is expected to improve over time. Investors should conduct further research into local economic indicators and government policies to make a fully informed decision.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.