Location: Kalamazoo-Portage, MI | Metro: Battle Creek, 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 | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,570 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,570 | $317,291 | 0.49% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $1150 for ZIP code 49012 in fiscal year 2024, landlords can expect to receive a substantial subsidy through the Section 8 program. The actual market rent, as reported by the Census ACS, stands at $932, indicating a potential premium of over $200 per unit for those enrolled in Section 8. Given the median home value of $335,031, the disparity between the FMR and market rent suggests that properties in this area could be priced competitively for both Section 8 participants and other tenants.
The renter share in ZIP 49012 is 15.0%, which means there's a notable portion of the population relying on rental housing. This statistic underscores the importance of maintaining a diverse range of rental options, including those that cater to low-income families. With a median income of $73,125, it's evident that many residents might struggle to afford market-rate rents without assistance.
While the days on market (DOM) and the percentage of listings that have had their prices cut are not available, these data points would typically influence the local rental market dynamics. A higher DOM could indicate slower sales activity, potentially leading to increased rental offerings. Similarly, a significant price-cut share might suggest that sellers are adjusting their expectations to align with current market conditions.
In summary, ZIP 49012 presents an opportunity for landlords and small-portfolio investors looking to participate in the Section 8 program. The discrepancy between the FMR and market rent, coupled with a moderate renter share and median income levels, supports the feasibility of managing Section 8 properties profitably. For those considering the program, the potential to earn above-market rates while serving a critical segment of the community makes ZIP 49012 a favorable location.
Verdict: ZIP 49012 is a solid choice for Section 8 investments.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.