HUD Fair Market Rent · FY 2026 · Effective Oct 1, 2025 to Sep 30, 2026
Fair Market Rent in Otsego County, Michigan (FY 2026)
A two-bedroom in Otsego County carries a FY 2026 Fair Market Rent of $1,100 a month, effective October 1, 2025 through September 30, 2026. Everything Section 8 pays in Otsego keys off that figure.
Two-bedroom FMR
$1,100
+10.6% from FY 2025
Payment standard
$990–$1,210
90% to 110% of the FMR, two-bedroom
Income to afford
$44,000
a year, with rent at 30% of income
Rank in Michigan
32nd of 83
by two-bedroom FMR, highest first
HUD has already published FY 2027. On October 1, 2026 the two-bedroom rate in Otsego moves to $1,192. That's up 8%. The full FY 2027 table is in the history section below.
FY 2026 Fair Market Rents
Payment standard is the 90% to 110% band a housing authority can set. Income needed puts rent at 30% of gross income, and the hourly wage assumes a 40-hour week.
| Bedrooms | FMR | Payment standard | Income needed | Hourly wage | vs FY 2025 |
|---|---|---|---|---|---|
| Studio | $852 | $767–$937 | $34,080 | $16.38/hr | +10.8% |
| 1 bedroom | $858 | $772–$944 | $34,320 | $16.50/hr | +10.9% |
| 2 bedroom | $1,100 | $990–$1,210 | $44,000 | $21.15/hr | +10.6% |
| 3 bedroom | $1,445 | $1,301–$1,590 | $57,800 | $27.79/hr | +8.3% |
| 4 bedroom | $1,560 | $1,404–$1,716 | $62,400 | $30.00/hr | +1.4% |
Five to eight bedrooms (PropMetrics estimates)
HUD stops at four bedrooms. These add 15% of the four-bedroom rent per extra bedroom. It's our estimate, not a HUD number.
| Bedrooms | Estimated FMR | Payment standard |
|---|---|---|
| 5 bedroom Estimate | $1,794 | $1,615–$1,973 |
| 6 bedroom Estimate | $2,028 | $1,825–$2,231 |
| 7 bedroom Estimate | $2,262 | $2,036–$2,488 |
| 8 bedroom Estimate | $2,496 | $2,246–$2,746 |
Source: HUD Office of Policy Development and Research, FY 2026 Fair Market Rents. Rents include utilities. huduser.gov
Market check
HUD's number is one input. What does a two-bedroom in Otsego actually rent for?
Search any address in Otsego for a rent estimate built from nearby comps, with the HUD figure right next to it.
No card needed
What a voucher pays here
The voucher doesn't pay the FMR itself. It pays the payment standard. Housing authorities set it anywhere from 90% to 110% of FMR, which puts a two-bedroom standard in Otsego somewhere between $990 and $1,210. The tenant pays roughly 30% of their income, the voucher covers the rest up to the standard, and the PHA won't approve a rent above what comparable unassisted units get.
$1,100 a month is affordable, by HUD's 30% rule, on an income of roughly $44,000 a year. Put another way, $21 an hour full time.
Worked example for a two-bedroom renting at the payment standard. The tenant pays 30% of monthly income and the voucher covers the rest.
| Monthly household income | Tenant pays (30%) | Voucher pays at 90%$990 | Voucher pays at 100%$1,100 | Voucher pays at 110%$1,210 |
|---|---|---|---|---|
| $2,500 | $750 | $240 | $350 | $460 |
| $4,000 | $1,200 | $0 | $0 | $10 |
Rate history
The two-bedroom rate went up 11% from FY 2025 ($995) to FY 2026 ($1,100). Since FY 2020 it's up 41% in total, about 5.9% a year. The Michigan median moved up 7% over the same year.
| Fiscal year | Studio | 1 BR | 2 BR | 3 BR | 4 BR | 2BR change |
|---|---|---|---|---|---|---|
| FY 2020 | $543 | $597 | $781 | $1,050 | $1,111 | — |
| FY 2021 | $593 | $656 | $865 | $1,122 | $1,218 | +10.8% |
| FY 2022 | $609 | $669 | $880 | $1,128 | $1,291 | +1.7% |
| FY 2023 | $636 | $699 | $920 | $1,219 | $1,394 | +4.5% |
| FY 2024 | $702 | $764 | $1,004 | $1,347 | $1,546 | +9.1% |
| FY 2025 | $769 | $774 | $995 | $1,334 | $1,539 | -0.9% |
| FY 2026In effect | $852 | $858 | $1,100 | $1,445 | $1,560 | +10.6% |
| FY 2027From Oct 1, 2026 | $938 | $944 | $1,192 | $1,511 | $1,676 | +8.4% |
About this rate
Fair Market Rent is HUD's estimate of what a modest, decent unit rents for in an area, utilities included. It's set once a year and runs October to September. For FY 2026 that's October 1, 2025 through September 30, 2026. In Otsego, that runs from $852 for a studio up to $1,560 for four bedrooms, all five rates in the table above.
Because Otsego sits outside any HUD metro area, its rate is a county-wide figure built from local rents. One number covers every address in the county, Gaylord included.
Among Michigan's 83 counties, Otsego ranks 32nd for two-bedroom FMR. That's about 6% above the state median of $1,033 and about 8% above the national median county at $1,018. About 25,221 people live here, 57th in the state.
Rates by ZIP code
Zoom in and the picture changes. HUD's Small Area FMRs put a two-bedroom at $1,050 in 49751 (Johannesburg) and $1,140 in 49795 (Vanderbilt), with the 6 ZIP codes in between. Housing authorities in HUD-designated metros use those ZIP rates instead of the county rate. Everywhere else the ZIP numbers show where rents actually sit, and the county rate stays the official standard.
Nearby counties
Two-bedroom FMR, with how each compares to Otsego.
Crawford County
20 mi · 13,197 people
$1,038
-6%
Montmorency County
26 mi · 9,261 people
$973
-12%
Antrim County
29 mi · 23,662 people
$1,162
+6%
Charlevoix County
30 mi · 26,174 people
$1,039
-6%
Cheboygan County
32 mi · 25,709 people
$1,054
-4%
Kalkaska County
34 mi · 17,934 people
$973
-12%
Oscoda County
34 mi · 8,264 people
$973
-12%
Emmet County
37 mi · 34,072 people
$1,235
+12%
Questions people ask
$1,100 a month for FY 2026, which runs October 1, 2025 through September 30, 2026. The other rates are $852 for a studio, $858 for one bedroom, $1,445 for three and $1,560 for four.
Tools for this county
Fair Market Rent lookup
Any ZIP code's Small Area FMR by bedroom count
Section 8 rent calculator
Payment standard and tenant share for a specific rent
What is Fair Market Rent?
How HUD calculates FMR and what it means for landlords
Rent affordability calculator
The income a household needs for a given rent
What does a rental in Otsego actually go for?
HUD's number is one input. Search any address in Otsego for a rent estimate built from nearby comps. 3 free searches, no card.
Free tier. No credit card.