Location: Lansing-East Lansing, 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 | $910 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $187,588 | 0.65% | D |
| 3BR | $1,570 | $231,082 | 0.68% | D |
| 4BR | $1,820 | $242,258 | 0.75% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 49073 in Nashville, MI might have several concerns regarding the feasibility of investing in rental properties. Let's address these specific objections using the available data.
Objection 1: Will Fair Market Rent (FMR) of $960 (for zip FY 2024) cover the mortgage on a $214,765 home?
To determine if the FMR will sufficiently cover the mortgage, we need to calculate the potential monthly mortgage payment based on the home price. Assuming a standard 30-year fixed-rate mortgage at an average interest rate of 4%, the monthly principal and interest payment would be approximately $1,040. This exceeds the FMR by about $80 per month. However, it's important to note that this calculation does not account for additional income sources such as property tax benefits or potential appreciation in property value. Moreover, the FMR is set by HUD and represents the maximum amount that can be charged for a rental unit, not necessarily the average rent collected.
Objection 2: Is there enough renter demand at 16.1%?
The 16.1% figure likely refers to the percentage of households that rent in the area. While this is a relatively low number compared to many urban areas, it still indicates a significant portion of the population seeking rental housing. To further assess demand, consider the local job market and population growth trends. If employment opportunities are stable and growing, this could offset the lower rental rate and ensure a steady stream of tenants. Additionally, the rental rate percentage alone does not provide a complete picture; the total number of renters and vacancy rates are also crucial factors to evaluate.
Objection 3: Will vouchers keep pace with $875 market rents?
The voucher program administered by the Department of Housing and Urban Development (HUD) aims to help low-income families afford decent housing. In ZIP 49073, the FMR is $960, which is higher than the market rent of $875. This suggests that vouchers should generally cover the cost of renting in this area. However, the effectiveness of vouchers can vary depending on the availability of units willing to accept them and the administrative capacity of local housing authorities to distribute and manage the vouchers. It's advisable to check the local housing authority's website for more detailed information on voucher distribution and administration in Nashville, MI.
In conclusion, while the data provides some answers, it's essential to conduct a thorough analysis of the local real estate market, including mortgage rates, employment trends, and the specifics of the voucher program in Nashville, MI. This will give a clearer picture of the investment potential in ZIP 49073.
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.