Location: Battle Creek, 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 | $810 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $305,572 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 49051 reveals an interesting investment scenario. The Fair Market Rent (FMR) for a 2-bedroom apartment in this area for fiscal year 2024 is set at $1020 per month. When annualized, this equates to a yearly rental income of $12,240. In contrast, the market rent based on Census ACS data stands at $843 per month, or $10,116 annually.
To derive the gross yield, we'll compare these annual rents against the median home value of $284,859. For the FMR scenario, the gross yield is calculated as follows:
For the market rent scenario, the gross yield is:
Given the 5.7% renter density in ZIP 49051, it's evident that the housing market is primarily geared towards homeowners rather than renters. This suggests that landlords should consider the lower market rent figure ($843 per month) as more realistic for long-term investment planning. The N/A-day DOM (days on market) indicates that there isn't sufficient data to determine how quickly properties are rented out, which could mean either strong demand or limited supply, depending on the broader context.
In conclusion, while the Section 8 program offers a higher potential gross yield of 4.30%, the actual market conditions imply a more conservative yield of 3.55%. Landlords and small-portfolio investors should base their investment decisions on the market rent figure to ensure sustainable returns over time.
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.