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 | $1,040 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,830 | $231,459 | 0.79% | D |
U.S. Census Bureau data (2024)
In ZIP code 48886, there are several factors that could negatively impact an investment in Section 8 properties. Tenant turnover is likely to be higher due to the disparity between the market rent at $950 and the Fair Market Rent (FMR) set for FY 2024 at $920. This difference means that landlords might struggle to find tenants willing to pay the full market rate, leading to frequent changes in occupancy.
Vacancy exposure is another concern, as the Days on Market (DOM) data is currently unavailable. This lack of information makes it difficult to predict how long a property might remain vacant, which can significantly affect cash flow and profitability. Additionally, the typical home value in the area stands at $183,222, while the median household income is only $61,667. This suggests that many residents may have limited financial resources, potentially leading to deferred maintenance issues if tenants cannot afford necessary repairs and improvements.
Despite these challenges, the high proportion of renters in ZIP 48886, representing 9.3% of the total population, generally indicates strong demand for rental housing. High renter density often translates into greater interest in Section 8 vouchers, which can help stabilize occupancy rates and provide a steady stream of qualified tenants. The presence of a significant number of voucher holders can mitigate some of the risks associated with vacancy and turnover, ensuring a more reliable income source for landlords.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 48886.
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.