Location: Saginaw, MI | Metro: Saginaw, MI MSA
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 | $770 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $155,224 | 0.71% | D |
| 3BR | $1,410 | $234,973 | 0.6% | D |
| 4BR | $1,450 | $302,626 | 0.48% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 48609 (Saginaw, MI, Saginaw, MI MSA metro) is favorable but tight. The Fair Market Rent (FMR) for FY 2024 stands at $950, slightly above the current market rent of $929 as per the Census ACS data. This indicates that landlords can charge close to the FMR without significantly overpricing their units.
Acquisition in this area is relatively affordable. With a median home value of $210,573, purchasing properties is within reach for many investors. However, the lack of data on days on market (DOM) and the low 0.3% price-cut share suggest that homes are selling quickly and without significant discounts, indicating a stable market but with limited room for negotiation.
Tenant demand is moderate. The ZIP code has a total population of 11,966, with 13.7% being renters. This means there are approximately 1,646 potential tenants in the area. Given the population size, the number of renters might be insufficient to sustain high vacancy rates, making it important for landlords to maintain competitive pricing and quality to attract and retain tenants.
Verdict: ZIP 48609 presents a balanced opportunity for landlords and small-portfolio investors. While the rent math works, with FMR just above market rates, the acquisition cost is reasonable with a median home value of $210,573. Tenant demand is present but not overwhelming, necessitating attention to property maintenance and pricing strategies. Overall, this area offers a stable investment environment with clear parameters for success.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.