Location: Ionia County, MI | Metro: Ionia County, MI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The ZIP code 48865, located within the HUD Metro FMR Area in Ionia County, Michigan, serves as a strong cash-flow anchor in a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) set by HUD and the actual market rents in the area.
In fiscal year 2024, HUD has established the FMR for ZIP 48865 at $1100 per month. However, the current market rent stands at $790 per month, indicating that landlords can expect to receive a higher rent payment through Section 8 vouchers compared to the local market rate. This $310 monthly difference represents a substantial cushion against potential shortfalls in rent and maintenance costs, ensuring steady and reliable cash flow.
The median home value in ZIP 48865 is $247,193, which suggests a relatively stable housing market. Although there is no specific percentage given for price-cut share or days on market (DOM), the lack of these figures does not detract from the ZIP's value as a cash-flow anchor. Landlords and small-portfolio investors should focus on the guaranteed rental income provided by the Section 8 program, which is particularly advantageous when the FMR exceeds the market rent.
The ZIP code also features a 26.1% renter share and a median income of $70,039. While these factors might suggest some diversification benefits, the primary appeal of ZIP 48865 remains its role as a cash-flow anchor due to the favorable FMR-to-market-rent ratio. The higher-than-market rental payments ensure that investors can cover mortgage expenses, property taxes, insurance, and maintenance costs with ease, making it an ideal addition to a Section 8-focused investment strategy.
To summarize, ZIP 48865 is best categorized as a cash-flow anchor within a Section 8 portfolio strategy. The $1100 FMR significantly outpaces the $790 market rent, providing a financial buffer that supports consistent profitability and stability for landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). 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.