Location: Montcalm County, MI | Metro: Montcalm County, MI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,140 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
U.S. Census Bureau data (2024)
The median income in ZIP code 48885 stands at $71,389, which places it squarely within the middle range for many households. However, when considering the market rate for rent, which is set at $1,375 according to Census ACS data, the ability for these households to afford housing becomes a critical point of analysis. At face value, a household earning the median income would find it challenging to allocate a significant portion of their earnings towards rent at this level.
To put this into perspective, let’s look at the federal payment standard for Section 8 vouchers. In ZIP code 48885 for fiscal year 2024, the Fair Market Rent (FMR) is set at $1,000. This means that a household receiving a Section 8 voucher would have their rent capped at this amount, significantly reducing the financial burden compared to the market rate of $1,375. For those not on the voucher program, the disparity between the median income and the market rent suggests a substantial affordability gap.
With only 13.4% of the 1,129 residents identified as renters, competition among landlords for tenants willing and able to pay the market rate is likely to be fierce. The limited number of renters means that landlords must carefully consider their pricing strategy to attract tenants without leaving too much money on the table.
The takeaway for landlords is clear: accepting Section 8 vouchers can be a strategic move to secure a steady stream of tenants who will reliably pay $1,000 per month, despite the lower rate compared to market rents. This approach can ensure occupancy and mitigate the risk associated with the high competition for the limited number of potential cash-paying tenants. Landlords should weigh the benefits of guaranteed rental income against the potential drawbacks of voucher programs, such as administrative requirements and slower payment cycles, to determine the best course of action for their properties.
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.