Location: Allegan 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 | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,220 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $940 | $205,676 | 0.46% | F |
| 2BR | $1,220 | $234,672 | 0.52% | F |
| 3BR | $1,570 | $291,322 | 0.54% | F |
| 4BR | $1,820 | $380,073 | 0.48% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering Gunplain, MI (ZIP 49080) might have several valid concerns regarding the feasibility of investing in the area under Section 8 guidelines. Let's address these concerns directly using the available data.
Objection 1: Will FMR $980 (zip FY 2024) cover the mortgage on a $293,634 home?
The Fair Market Rent (FMR) for ZIP 49080 in fiscal year 2024 is set at $980. This figure represents the average monthly rent that a landlord can expect to receive through the Section 8 program. To determine if this amount will sufficiently cover the mortgage on a home priced at $293,634, we need to consider the typical mortgage payment structure. Assuming a standard 30-year fixed-rate mortgage with an interest rate of around 5%, the monthly mortgage payment for a property costing $293,634 would be approximately $1,550, including principal, interest, taxes, and insurance. Clearly, the FMR of $980 falls short of covering the full mortgage payment, indicating that additional income sources or a different investment strategy may be necessary to ensure profitability.
Objection 2: Is there enough renter demand at 18.0%?
The percentage of renter-occupied housing units in ZIP 49080 is 18.0%. This suggests that the majority of residents own their homes rather than renting them. While 18.0% might seem low, it is important to note that the demand for rental properties under Section 8 is often driven by government programs and subsidies, which can stabilize the market. However, the data does not provide insights into the specific demand for Section 8 rentals, so it remains uncertain whether this 18.0% includes enough tenants eligible for the program to sustain a steady rental income.
Objection 3: Will vouchers keep pace with $1,010 market rents?
The current market rent for a two-bedroom apartment in ZIP 49080 is $1,010 per month. The FMR of $980 is slightly below this figure, raising questions about the ability of vouchers to keep up with market conditions. Historically, voucher amounts have been adjusted annually based on cost-of-living increases and other economic factors. However, the data does not specify the exact amount of the voucher increase for the upcoming fiscal year. Therefore, while there is a precedent for adjustments, it is unclear whether they will fully offset the difference between the FMR and the market rent of $1,010.
In conclusion, while investing in Gunplain, MI (ZIP 49080) under Section 8 guidelines presents some challenges, particularly with regards to the coverage of mortgage payments and the overall demand for rental properties, the potential stability provided by government-backed rentals could still make it a viable option for some investors. It is crucial to conduct thorough due diligence and possibly seek advice from local real estate experts to navigate these issues effectively.
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.