Location: St. Joseph 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 | $790 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $218,725 | 0.48% | F |
| 3BR | $1,380 | $292,423 | 0.47% | F |
| 4BR | $1,460 | $342,798 | 0.43% | F |
U.S. Census Bureau data (2024)
Vicksburg, MI, located in ZIP code 49097 within the St. Joseph County, MI metro area, presents a strategic opportunity for inclusion in a Section 8 portfolio. This ZIP code stands out as an ideal cash-flow anchor. The primary reason for this classification lies in the significant spread between the Fair Market Rent (FMR) for a 4-bedroom unit under Section 8, which is set at $950 for fiscal year 2024, and the local market rent of $1,300 for the same unit size. This $350 difference per month can be a reliable source of steady income, ensuring that properties in Vicksburg maintain strong positive cash flow.
The median home value in Vicksburg is $277,287, indicating a relatively stable housing market. However, the focus on cash flow rather than appreciation makes this ZIP code particularly attractive for landlords and small-portfolio investors looking to secure consistent rental income. While the price-cut share stands at 0.2%, suggesting a minor need for price adjustments to attract tenants, the day-on-market (DOM) figure is not applicable, implying that units typically rent quickly once listed.
Furthermore, with a renter share of 14.8%, there is a notable demand for rental properties in the area. Coupled with the median household income of $88,208, this indicates that tenants are likely to have the financial stability required to meet their rental obligations consistently. These factors combined make ZIP 49097 a robust choice for a cash-flow anchor within a Section 8 portfolio strategy.
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.