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 | $810 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $174,101 | 0.61% | D |
| 3BR | $1,410 | $231,051 | 0.61% | D |
| 4BR | $1,700 | $296,139 | 0.57% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 49047, located in Dowagiac, MI, and part of the Van Buren County, MI metro area, does not align perfectly. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $910, which is higher than the market rent of $858 as reported by the Census ACS. This discrepancy suggests that landlords may need to adjust their expectations if they aim to compete with market rates.
Regarding acquisition affordability, the median home value stands at $222,260. While this figure indicates a relatively low entry barrier into the real estate market, the lack of data on days-on-market (DOM) and the minimal 0.2% price-cut share suggest that homes are not frequently being discounted and may sell quickly. This implies a stable market with little room for significant negotiation on purchase prices.
Tenant demand is moderate. With a total population of 14,858, the renter share is 24.0%, translating to approximately 3,566 renters. This number provides a reasonable pool of potential tenants, though it is important to note that the demand is not exceptionally high, and landlords should be prepared for competition among other rental properties.
In summary, while the acquisition cost is relatively low at $222,260, the FMR of $910 slightly overshadows the actual market rent of $858, indicating a need for careful pricing strategies. Tenant demand is present but not overwhelming, with around 3,566 renters out of a total population of 14,858. Landlords should balance their rent expectations with the competitive market conditions to ensure steady occupancy and profitability.
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.