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 | $990 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $216,106 | 0.6% | D |
| 3BR | $1,730 | $302,369 | 0.57% | F |
| 4BR | $1,840 | $374,021 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 49024, located in Portage, Michigan, presents an interesting scenario when viewed from the perspective of renters. The median household income here stands at $91,105, which is relatively high. However, the market rate for rent, known as the Zillow Observed Rent Index (ZORI), is set at $1,668 per month. This figure represents a significant portion of the average household’s monthly income, making it challenging for many residents to afford market-rate rents without assistance.
To put this into context, let's consider the federal housing voucher program. The Fair Market Rent (FMR) for ZIP 49024 in fiscal year 2024 is set at $1,200. This means that the government will pay up to $1,200 per month towards rent for eligible households. The difference between the ZORI and the FMR highlights a substantial affordability gap, where the market rate exceeds the government subsidy by $468 per month.
With 31.5% of the population renting and a total population of 30,823, there is considerable competition among landlords for tenants. The affordability gap suggests that many potential renters might struggle to cover the higher market rates without financial aid. Therefore, landlords who rely solely on cash-paying tenants may find themselves with fewer options and potentially lower occupancy rates.
The takeaway for landlords considering their strategy is clear: focusing on both cash-paying and voucher-supported tenants can provide a balanced approach to managing rental properties in ZIP 49024. While cash-paying tenants offer immediate full payments, the high market rates make it essential to also accept vouchers to ensure a steady stream of reliable tenants. By doing so, landlords can leverage the federal support to fill vacancies and maintain competitive pricing, ensuring a stable income even amidst the local affordability challenges.
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.