Location: Mecosta 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $181,646 | 0.6% | D |
| 3BR | $1,330 | $251,979 | 0.53% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 48850, located in Lakeview, Michigan, within the Mecosta County, MI metro area, reveals several key points regarding its viability for Section 8 landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for FY 2024 is set at $910. However, the Census ACS reports a market rent of $700. This indicates that the rent math does work favorably for landlords, as they can potentially receive a higher rent payment through Section 8 vouchers compared to the local market rate.
The second consideration is the affordability of acquisition. The median home value in this ZIP code is $215,905. With no available data on days on market (DOM) or the percentage of homes requiring price cuts, it's challenging to assess the exact speed and ease of property acquisition. Nonetheless, the median home value suggests that properties in this area are moderately priced, which could be attractive for investors looking to acquire real estate without breaking the bank.
Lastly, we must evaluate tenant demand. The population of ZIP 48850 is 4,659, with a renter share of 13.2%. This relatively low renter share might indicate limited demand for rental properties. Landlords should consider the potential for vacancy periods and the need to market effectively to attract tenants.
In summary, ZIP 48850 offers a favorable rent differential for Section 8 landlords, with a higher FMR than the market rent. Property acquisition appears affordable given the median home value, though the lack of DOM and price-cut data means that the specifics of the buying process remain unclear. Tenant demand is somewhat limited due to the low renter share, which could pose challenges in maintaining occupancy. Overall, while the financials look promising, landlords must be prepared for potentially lower tenant interest and take proactive steps to manage their properties effectively.
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.