Location: Kalamazoo-Portage, MI | Metro: Kalamazoo-Portage, MI MSA
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 | $890 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,020 | $171,019 | 0.6% | F |
| 2BR | $1,170 | $99,644 | 1.17% | B |
| 3BR | $1,560 | $116,210 | 1.34% | A |
| 4BR | $1,650 | $133,917 | 1.23% | A |
| 5BR | $1,914 | $180,204 | 1.06% | B |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 49007 in Kalamazoo, MI, for fiscal year 2024 is set at $1040. This figure represents the maximum amount that the U.S. Department of Housing and Urban Development (HUD) will pay towards a tenant's rent under the Section 8 housing voucher program. It is not the actual rent you can charge your tenants.
In contrast, the Zillow Observed Rent Index (ZORI), which reflects typical market rents, stands at $1295 per month for ZIP 49007. This indicates that market rents are higher than the HUD payment standard, meaning landlords might need to subsidize the difference between the FMR and the actual rent they collect.
The demand for rental properties in ZIP 49007 is strong, with a renter share of 75.8%. This high percentage suggests that a significant portion of the population is renting, making it a good area for potential Section 8 rentals. However, it also implies competition among landlords for these tenants.
When acquiring a property for a Section 8 rental, consider the median home value, which is around $119,706. This figure can help you understand the typical investment required to enter the market in this ZIP code. Keep in mind that the actual price of a property may vary depending on its condition and location.
Before committing to a Section 8 rental, verify that the property meets all HUD's Housing Quality Standards (HQS). These standards ensure that the unit is safe, decent, and sanitary for tenants. Compliance is mandatory and failure to meet these standards could result in termination of the contract.
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.