Location: Gratiot County, MI | Metro: Midland, 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 | $820 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $219,664 | 0.62% | D |
U.S. Census Bureau data (2024)
ZIP 48637, located in Gratiot County, Michigan, is best suited as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) for a 2-bedroom unit under Section 8, which is set at $950 for fiscal year 2024, and the local market rent of $740. This difference ensures a steady and reliable cash flow for landlords participating in the program.
The median home value in ZIP 48637 is $197,799, indicating that it is not a high-end market. Instead, it offers a stable environment where the primary benefit comes from the guaranteed rental income provided by the Section 8 program. Landlords can expect a consistent stream of rental payments without the volatility associated with private market rents.
Additionally, the area has a median income of $65,865, which supports the viability of the Section 8 program. While this income level is not exceptionally high, it still allows for a substantial number of residents to qualify for the assistance, ensuring a steady pool of potential tenants.
ZIP 48637 does not present itself as an appreciation play, given the lack of recent price increases or rapid sales turnover. The Days on Market (DOM) for properties in this area is around 65 days, which is higher than desirable for quick flips or short-term investments focused on capital gains.
In conclusion, ZIP 48637 serves as a reliable cash-flow anchor due to the favorable spread between Section 8 FMR and local market rents, along with a stable median home value and income levels. This makes it an ideal choice for landlords and small-portfolio investors looking to secure predictable rental income.
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.