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 | $950 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $249,765 | 0.54% | F |
| 3BR | $1,790 | $339,419 | 0.53% | F |
| 4BR | $1,790 | $460,176 | 0.39% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 49106, located in Bridgman, Michigan, reveals a market that is neither a high-yield flip-style zone nor a steady cashflow haven, but rather a blend of both characteristics. The Fair Market Rent (FMR) for 2024 stands at $1,150, which is slightly above the market rent of $1,124. This suggests a modest potential for rental income, but it does not indicate a highly speculative environment typical of flip-style markets.
On the yield axis, the FMR of $1,150 is relatively close to the market rent of $1,124, suggesting a competitive rental market where landlords can expect to achieve fair returns on investment. However, the median home value of $343,379 is significantly higher than the combined annual rental income of $13,480 ($1,124 * 12 months), indicating that property appreciation could play a role in overall investment yield. For instance, a 1% annual increase in home value would contribute an additional $3,434 to the total yield, making it a more attractive proposition for long-term investors.
Moving to the stability axis, the rental population constitutes 20.2% of the total residents, which is a low percentage and indicates a less stable market. The lack of data on the average number of days on market (DOM) suggests that there might be challenges in measuring how quickly properties are rented out, which is a key indicator of market stability. Additionally, the median household income of $72,500 provides insight into the economic health of the area, but without a comparison to the average rent, it's challenging to assess how sustainable the rental rates are.
In conclusion, ZIP 49106 leans towards a steady-cashflow zone due to the reasonable rental yields, but the low percentage of renters and limited data on DOM suggest that it carries some risk. Investors should focus on properties with strong fundamentals and consider diversifying their portfolio to mitigate the inherent instability. The combination of modest rental income potential and moderate property values makes this a balanced investment opportunity, suitable for those who prioritize consistent returns over speculative gains.
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.