Location: Van Buren County, MI | Metro: Allegan County, MI
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 | $960 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $247,092 | 0.51% | F |
| 3BR | $1,550 | $296,734 | 0.52% | F |
| 4BR | $1,820 | $349,757 | 0.52% | F |
| 5BR | $2,111 | $412,593 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 49010 in Allegan, Michigan, reveals a favorable environment for landlords and small-portfolio investors. The Fair Market Rent (FMR) set by HUD for the metro area, covering Allegan and Van Buren Counties, is $1,210 for fiscal year 2026. In comparison, the Census ACS reports an average market rent of $1,147, indicating that voucher tenants will cashflow at the FMR level.
To derive the rent-to-price ratio, we consider the median home value of $279,929. This yields a ratio of approximately 4.9%, which is relatively low, suggesting that rental properties could be more attractive to investors than purchasing homes in this area. However, the dynamics of the local real estate market, including the N/A-day median days on market (DOM) and the 0.2% share of homes that have undergone price reductions, do not significantly impact the decision between renting and buying.
The strong cashflow potential is the most compelling angle for investors in ZIP 49010. With the HUD FMR exceeding the current market rent, landlords can expect steady income from voucher tenants without the need to seek premium units. This makes the area particularly appealing for those seeking stable, positive cashflow opportunities.
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.