Location: Van Buren County, MI | Metro: Kalamazoo-Portage, 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 | $810 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $194,123 | 0.55% | F |
| 3BR | $1,410 | $311,645 | 0.45% | F |
| 4BR | $1,500 | $416,780 | 0.36% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 49087, Schoolcraft, MI, reveals a distinct picture when it comes to Section 8 properties. For a two-bedroom unit, the Fair Market Rent (FMR) set by HUD for fiscal year 2024 is $950 per month. Annualizing this figure yields an annual rental income of $11,400. The median home value in this area is $344,657, providing a basis for calculating the potential gross yield.
Using the FMR, the gross yield can be calculated as follows: divide the annual rental income by the median home value. This gives us a gross yield of approximately 3.3%. To calculate this, we use the formula: ($11,400 / $344,657) * 100 = 3.3%. In contrast, the market rent for a two-bedroom unit is $1,008 per month, leading to an annual rental income of $12,096. Applying the same calculation method, the gross yield based on market rent is about 3.5%. Using the formula: ($12,096 / $344,657) * 100 = 3.5%.
Given that only 9.4% of the population are renters, the likelihood of achieving the higher market rent consistently is slim. Additionally, the lack of data on days on market (DOM) suggests instability in the rental market, further tilting the scales towards the lower FMR-based gross yield. Therefore, while both yields provide insight into the potential returns, the $950 FMR-based gross yield of 3.3% is more reflective of the realities faced by landlords and small-portfolio investors in Schoolcraft, MI.
To summarize:
The lower gross yield based on the FMR is more likely to be realized due to the low renter density and the uncertain rental market dynamics in the area.
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.