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 | $870 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $154,591 | 0.74% | D |
| 3BR | $1,520 | $217,708 | 0.7% | D |
| 4BR | $1,610 | $286,300 | 0.56% | F |
U.S. Census Bureau data (2024)
The median household income in ZIP 49048, Comstock, Michigan, stands at $60,454. The market rate for rent, known as the Zillow Observed Rent Index (ZORI), is $1,346 per month. This means that a household earning the median income would spend approximately 27 percent of their monthly income on rent at the market rate. However, the Federal Market Rent (FMR) for this ZIP code for fiscal year 2024 is set at $1,050, which is significantly lower than the market rate.
To put this into perspective, if we consider a household earning the median income, they would be able to afford the FMR rate with only about 21 percent of their monthly earnings dedicated to rent. This highlights a substantial affordability gap between the market rate and the FMR rate.
With 38.2 percent of the population being renters and a total population of 22,791, there is a notable demand for affordable housing options. Landlords operating in this area must navigate this gap carefully, balancing between higher market rates and the more modest FMR payments.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While cash-paying tenants might offer higher rents closer to the ZORI, accepting vouchers can ensure a steady stream of reliable income, albeit at the FMR rate. Given the significant portion of the population that relies on rental housing and the potential financial strain of market-rate rents, landlords should prepare for increased competition from those who accept vouchers. Offering units at or near the FMR rate could attract a larger pool of tenants, particularly those who rely on assistance programs, thereby ensuring occupancy and stability.
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.