Location: Barry County, MI | Metro: Barry County, MI HUD Metro FMR Area
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 | $1,020 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,020 | $188,624 | 0.54% | F |
| 2BR | $1,340 | $228,301 | 0.59% | F |
| 3BR | $1,680 | $280,176 | 0.6% | F |
| 4BR | $2,030 | $331,703 | 0.61% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 49058, Hastings, MI, might raise several concerns regarding the viability of investing in rental properties here. Let's address these points directly using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1,320 (metro FY 2026) cover the mortgage on a $265,983 home?
To evaluate this, we need to consider the average mortgage payment for a property priced at $265,983. Assuming a typical 30-year fixed-rate mortgage at an interest rate of 5%, the monthly mortgage payment would be approximately $1,427. This is higher than the FMR of $1,320. Therefore, relying solely on FMR to cover mortgage payments would result in a shortfall of $107 per month. However, it's important to note that FMR does not account for potential appreciation in property value over time or the possibility of renting out additional units in multi-family properties, which could offset this initial gap.
Objection 2: Is there enough renter demand at 17.2%?
The percentage of renters in ZIP 49058 stands at 17.2%. While this figure is relatively low compared to urban areas, it suggests that there is still a significant number of individuals who prefer renting over owning. For a population of approximately 1,700 people, this translates to around 292 renters. To determine if this demand is sufficient, one must consider the supply of rental properties and the vacancy rates. If the vacancy rate is high, it could indicate that there are more rental units than renters, making it harder to find tenants. Conversely, a lower vacancy rate would suggest that the demand is more closely aligned with the supply. Unfortunately, the provided data does not include vacancy rates, so a precise assessment of demand cannot be made without additional information.
Objection 3: Will vouchers keep pace with $924 market rents?
The market rent in ZIP 49058 is estimated at $924. Vouchers are intended to help bridge the gap between what a tenant can afford and the cost of housing. According to HUD guidelines, voucher amounts are adjusted annually based on the Area Median Income (AMI) and local housing costs. In Hastings, MI, the likelihood of vouchers covering the entire $924 market rent is uncertain without knowing the specific AMI and how much of the rent vouchers typically cover. Generally, vouchers do not cover the full rent but provide a substantial portion. Landlords should also consider the administrative ease and reliability of voucher payments, which often come with less risk of non-payment compared to traditional tenants.
In conclusion, while the data indicates some challenges in covering mortgage payments and assessing renter demand, it also highlights the potential benefits of accepting vouchers and the stability they can bring to cash flow. Investors should conduct further research into local vacancy rates and the specifics of voucher programs to make a well-informed decision.
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.