Location: Van Buren County, MI | Metro: Van Buren County, MI
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 | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $207,629 | 0.5% | F |
| 3BR | $1,370 | $280,312 | 0.49% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 49079, located in Paw Paw, Michigan, reveals a unique balance between yield and stability that does not clearly fit into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a market that offers moderate potential on both fronts.
On the yield axis, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 stands at $1,040. This is significantly higher than the market rent of $859, indicating a potential opportunity for landlords to charge rents above the local average if they can position their properties competitively. The median home value of $271,308 suggests a relatively stable housing market, which could support rental pricing strategies that capitalize on the FMR differential.
Moving to the stability axis, the rental market in ZIP 49079 is characterized by a 21.6% share of renters, which is lower than the national average and points towards a market where homeownership is more prevalent. This can be seen as a positive sign for stability, as a higher rate of homeownership typically correlates with less volatility in rental demand. However, the lack of data on days on market (DOM) means there's an incomplete picture of how quickly rental units turn over, which is a key indicator of stability. Lastly, the median household income of $73,333 provides insight into the economic health of the area and the ability of residents to pay rent, contributing to a stable cash flow for landlords who manage their properties effectively.
In summary, ZIP 49079 presents a market that leans towards providing steady cash flow rather than high-yield returns. While there is room for increased rental income due to the favorable FMR, the low percentage of renters and solid median income suggest a preference for stability over rapid turnover and flipping. Landlords should focus on maintaining a good occupancy rate and managing costs efficiently to ensure profitability and stability in this market.
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.