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 | $840 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $242,072 | 0.5% | F |
| 3BR | $1,590 | $323,338 | 0.49% | F |
| 4BR | $1,590 | $420,272 | 0.38% | F |
U.S. Census Bureau data (2024)
Baroda, MI, located in ZIP code 49101, is a small, predominantly owner-occupied community with a total population of 2,947 residents. Only 13.8% of the residents are renters, indicating a primarily homeowner-driven market. The median household income stands at $75,048, suggesting a middle-class neighborhood where most residents can afford modest housing costs. The median home value in Baroda is $325,995, which aligns with the overall economic profile of the area.
The Federal Market Rent (FMR) for ZIP code 49101 in fiscal year 2024 is set at $1,130, while the Census American Community Survey reports the average market rent at $1,007. This means that landlords participating in the Section 8 program can expect to receive slightly higher rents than the local market rate, providing a margin that covers maintenance and management costs.
Given these figures, ZIP code 49101 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to market rent ensures a steady cash flow without the need for active property management. On the other hand, value-add buyers can leverage the relatively low rent-to-income ratio and modest home values to improve properties and potentially command higher rents once the improvements are made, staying within the FMR limits.
In conclusion, Baroda's demographics and economic conditions present a stable environment for Section 8 investment. The slight premium of FMR over market rent supports passive income generation, while the opportunity for property enhancement makes it attractive for those willing to invest in renovations and upgrades.
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.