Location: Niles, MI | Metro: Niles, 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 | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,020 | $228,433 | 0.45% | F |
| 2BR | $1,330 | $261,568 | 0.51% | F |
| 3BR | $1,750 | $322,471 | 0.54% | F |
| 4BR | $1,750 | $433,916 | 0.4% | F |
| 5BR | $2,030 | $599,464 | 0.34% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 49085 in Saint Joseph, Michigan, for fiscal year 2024 is set at $1190. This figure represents the maximum amount that a landlord can receive from the government under the Section 8 program for a unit in this area. It's important to note that this is not the rent you charge your tenants; it's the reimbursement limit from the Housing Choice Voucher program.
To put this into perspective, the local Zillow Observed Rent Index (ZORI) for ZIP 49085 is $1,754. This means that if you're looking to maximize your income, you could potentially charge a higher rent than the FMR for Section 8 tenants, but you'll need to ensure that the tenant covers the difference between the FMR and your rent. In this case, the tenant would be responsible for paying an additional $564 per month on top of the $1190 subsidy.
The demand for rental properties in this area is strong, with 23.7% of the population being renters. This indicates a significant portion of residents who rely on rentals, including those who might benefit from the Section 8 program. However, given the high local rents, many Section 8 tenants may find it challenging to cover the extra costs, which could affect your occupancy rates.
If you're considering acquiring a property in ZIP 49085 for a Section 8 rental, the median home value is approximately $328,948. This figure gives you a benchmark for the cost of entry into the market. Keep in mind that this does not include any renovation costs that might be necessary to meet the housing quality standards required by the Section 8 program.
Before finalizing your decision, verify that the property meets all the necessary criteria for the Section 8 program. These include safety, habitability, and overall condition, as determined by a physical inspection. This step is crucial to avoid any delays or disqualifications once you've invested in the property.
In summary, while the FMR of $1190 provides a clear reimbursement limit, the local rent index suggests a higher potential for rental income. With a substantial 23.7% of the population renting, there is demand for rental properties, but the financial viability will depend on the willingness of tenants to pay the additional rent above the FMR. The median home value of $328,948 offers insight into the investment cost, but ensuring compliance with Section 8 requirements is essential for a successful venture.
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.