Location: Midland, 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 | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $176,543 | 0.65% | D |
| 3BR | $1,430 | $240,350 | 0.59% | F |
| 4BR | $1,710 | $351,732 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP 48640, located in Midland, MI, within the Midland, MI MSA metro area, is best suited as a cash-flow anchor in a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 is set at $1020, which is significantly lower than the market rent of $1650. This $630 difference represents a strong potential for consistent cash flow, given that landlords can rely on the guaranteed rental income from the Section 8 program while the local market offers higher rents.
The median home value in ZIP 48640 is $246,750, indicating a relatively stable housing market. However, the low spread between FMR and market rent makes it particularly attractive for those looking to secure reliable cash flows. The fact that the FMR is $1020 suggests that the government will cover this amount for eligible tenants, ensuring that landlords receive a steady income regardless of market fluctuations.
While the appreciation potential is limited, with a 0.2% price-cut share and an average days on market (DOM) of 19 days, these factors do not detract from its role as a cash-flow anchor. Instead, they suggest a balanced market where property values are unlikely to plummet, providing a safe haven for investment during uncertain economic times.
The 25.0% renter share and median income of $80,574 further support the cash-flow anchor designation. A moderate renter share means there's a good mix of homeowners and renters, reducing the risk of oversaturation in the rental market. Additionally, the median income indicates that tenants are likely to be financially stable, reducing the risk of default or late payments.
In conclusion, ZIP 48640 stands out as a solid choice for a cash-flow anchor in a Section 8 portfolio. The significant gap between FMR and market rent, combined with stable property values and a financially secure tenant base, makes it an excellent option for generating predictable returns.
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.