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 | $740 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $181,330 | 0.59% | F |
| 3BR | $1,410 | $253,624 | 0.56% | F |
| 4BR | $1,420 | $307,781 | 0.46% | F |
| 5BR | $1,647 | $391,576 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 49107, located in Buchanan, MI, within the Niles, MI MSA metro area, serves as a critical component in a Section 8 portfolio strategy. This area stands out as an appreciation play due to its unique characteristics and market conditions.
The Federal Market Rent (FMR) for ZIP 49107 in fiscal year 2024 is set at $950. In comparison, the market rent for the same period is slightly lower at $940, indicating a minimal spread of just $10. This narrow gap suggests that rental properties in this ZIP code are priced close to the government's subsidy levels, making them attractive for tenants who qualify for Section 8 assistance. The median home value in ZIP 49107 is $231,163, which is relatively affordable compared to other metropolitan areas.
The appreciation potential in ZIP 49107 is underscored by the low 0.2% price-cut share, meaning very few properties are being sold at a discount. Additionally, the day on market (DOM) data is not applicable here, which implies that homes are selling quickly without prolonged exposure to the market. These factors suggest a robust local real estate market where property values are likely to appreciate over time.
ZIP 49107 also has a significant 20.4% renter share, indicating that there is a substantial portion of the population who prefer renting over buying. This makes the area suitable for landlords looking to attract and retain tenants. Furthermore, the median income of $66,289 provides a stable economic foundation for the area, ensuring that there is sufficient demand for rental properties among those who can afford the costs associated with living in Buchanan, MI.
In conclusion, ZIP 49107 is best suited as an appreciation play within a Section 8 portfolio strategy. Its narrow spread between FMR and market rent, coupled with a strong local real estate market and a healthy median income level, supports the idea that properties in this area will likely see value growth over time, making it a wise investment choice for landlords and small-portfolio investors.
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.