Section 8 Fair Market Rent (FMR) for ZIP 49088 - 2027

Location: Kalamazoo-Portage, MI | Metro: Kalamazoo-Portage, MI MSA

Investment Score for ZIP 49088

Monthly Rent (2BR)

$1,060

Median Price (2BR)

$305,236

1% Rule

0.35%

Annual Yield

4.17%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$800
1 Bedroom	$920
2 Bedrooms	$1,060
3 Bedrooms	$1,400
4 Bedrooms	$1,480
5 Bedrooms	$1,717
6 Bedrooms	$1,923
7 Bedrooms	$2,077
8 Bedrooms	$2,181

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,060	$305,236	0.35%	F
3BR	$1,400	$325,316	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,807

Median Household Income

$100,208

Housing Units

1,582

Renter Percentage

5.4%

Occupancy Rate

97.9%

Renter Occupied

The ZIP code 49088, encompassing Scotts, MI, presents a unique opportunity for real-estate investors looking to diversify their portfolio into areas with stable rental markets and moderate home values. The area's economic indicators suggest a balanced environment where both homeownership and renting are viable options.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 49088 for fiscal year 2024 is set at $1240. This figure represents the average rent that landlords can expect to charge for properties of this size, providing a benchmark for pricing.
The market rent data is currently unavailable for ZIP 49088, indicating that there may be limited competition or less data on recent rental transactions in the area.
The median home value in the ZIP code stands at $321,452, which is a key metric for assessing the overall property value in the area and can influence the potential resale value of homes.
Renters make up only 5.4% of the population in ZIP 49088, suggesting that the majority of residents prefer owning their homes over renting, which could impact the demand for rental properties.
The Days on Market (DOM) data is also currently unavailable, but it would typically indicate how quickly homes are selling, giving insight into the local housing market's velocity.
The median household income in the area is $100,208, reflecting a relatively affluent community that may have a higher propensity to invest in homeownership rather than renting.

Given the data points above, investors should consider the area's moderate home values and the strong economic foundation as positive aspects. However, the low renter share and potentially slow sales cycle could pose challenges. The established FMR provides a clear pricing guideline for rental units, while the high median income suggests that those who do choose to rent are likely able to afford higher rents. For small-portfolio investors, focusing on quality rentals that meet or slightly exceed the FMR could be a strategic approach to capitalize on the area's stability without overextending resources into a highly competitive 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.