Location: Van Buren County, MI | Metro: Niles, 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 | $780 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $204,466 | 0.55% | F |
| 3BR | $1,470 | $263,597 | 0.56% | F |
| 4BR | $1,470 | $338,081 | 0.43% | F |
| 5BR | $1,705 | $527,211 | 0.32% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering real estate investments in ZIP 49038, Coloma, Michigan, often raise several key concerns. Let's address them directly using the available data.
Will FMR $1060 (zip FY 2024) cover the mortgage on a $244,056 home?
The Fair Market Rent (FMR) for ZIP 49038 is set at $1060 for FY 2024. To determine if this will cover the mortgage on a home priced at $244,056, we need to consider typical mortgage rates and terms. Assuming a standard 30-year fixed-rate mortgage at an interest rate of 4.5%, the monthly payment on a $244,056 home would be approximately $1200. At first glance, the $1060 FMR does not fully cover this mortgage payment. However, it's important to note that FMRs are designed to reflect average rental costs, not necessarily to cover the full cost of homeownership. Landlords can supplement the FMR with additional income sources such as property management fees or seek higher-paying tenants outside the voucher program.
Is there enough renter demand at 23.3%?
The percentage of renter-occupied housing units in ZIP 49038 stands at 23.3%. This figure indicates a moderate level of demand, but it's crucial to understand that this is just one metric. The total number of households in the area is also significant. With 23.3% of the 1,372 households renting, there are approximately 320 potential renters. While this may seem low compared to some urban areas, it's essential to consider the local market dynamics. Coloma, being a rural community, typically has lower vacancy rates due to limited housing options. Additionally, the demand for rental properties can vary based on seasonal fluctuations and local economic factors, which are not fully captured by this statistic alone.
Will vouchers keep pace with $938 market rents?
The market rent in ZIP 49038 is reported at $938. Given that the FMR is slightly higher at $1060, landlords participating in the voucher program should see a positive impact. However, whether vouchers will keep pace with market rents depends on the annual adjustments made by the Department of Housing and Urban Development (HUD). Historically, HUD adjusts FMRs annually based on changes in the housing market, but these adjustments may not always match the exact increase in local market rents. Therefore, while the current FMR is above the market rent, future alignment cannot be guaranteed without tracking annual updates. It's advisable for investors to monitor these adjustments closely to ensure continued profitability.
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.