Location: Gratiot County, MI | Metro: Montcalm County, MI HUD Metro FMR Area
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 | $750 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $193,585 | 0.56% | F |
| 3BR | $1,330 | $233,494 | 0.57% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 48818 in Crystal, Michigan reveals a favorable rental environment. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1070, which is significantly higher than the current market rent of $811 according to Census ACS data. This indicates that voucher tenants will cashflow at the FMR rate, providing landlords with a steady income above typical market rates.
To further understand the investment potential, consider the median home value in the area, which stands at $197,237. Using the HUD FMR of $1070, we can calculate a rent-to-price ratio of approximately 0.6%, suggesting that rental income could be a more attractive option compared to purchasing homes outright in this region. However, the lack of available data on the median days on market (DOM) and the percentage of price cuts in the housing market means that it's challenging to assess the exact dynamics between renting and buying. Nonetheless, the gap between the HUD FMR and the market rent provides a strong indication that the rental market is undervalued relative to what voucher holders can afford.
In conclusion, the strongest investor angle in ZIP 48818 is cashflow. With the HUD FMR well above the current market rent, landlords can expect consistent positive cash flow from voucher tenants without needing to rely on premium units or significant property upgrades.
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.