Location: Montcalm County, MI | Metro: Grand Rapids-Wyoming, 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 | $1,110 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $221,646 | 0.62% | D |
| 3BR | $1,790 | $288,754 | 0.62% | D |
| 4BR | $1,980 | $333,507 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 48838 is located within the city of Greenville, Michigan, representing a community of 18,212 residents. Approximately 26.4% of these residents are renters, indicating a moderate rental market presence. The median household income in this area stands at $70,176, reflecting a middle-class demographic. Median home values in ZIP 48838 are notably high at $265,942, suggesting a relatively affluent neighborhood.
From an investment perspective, the economic landscape is defined by the disparity between the Fair Market Rent (FMR) and the actual market rent. For the fiscal year 2024, the FMR for ZIP 48838 is set at $1,200, which is significantly lower than the market rent of $1,797, as indicated by ZORI (Zillow Observed Rent Index). This gap highlights a potential opportunity for landlords and small-portfolio investors who can leverage the higher market rents while still attracting tenants through the Section 8 program.
Given the characteristics of ZIP 48838, it is well-suited for both hands-off voucher operators and hands-on value-add buyers. Voucher operators can benefit from the stable income provided by the Section 8 program, despite the lower FMR, while value-add buyers can capitalize on the difference between the FMR and market rent to improve property conditions and increase rental yields. Investors should consider the local demand for affordable housing and the potential for rent growth when deciding on their investment strategy.
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.