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 | $830 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $891,999 | 0.17% | F |
| 4BR | $1,550 | $1,128,034 | 0.14% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 49116 within the Niles, MI MSA metro reveals several key points for potential Section 8 landlords and small-portfolio investors.
The rent math is straightforward. The Fair Market Rent (FMR) for ZIP 49116 in fiscal year 2024 is set at $1070. However, due to limited market rent data, a direct comparison cannot be made. Landlords should ensure their rental properties meet the standards required for Section 8 tenancy to maximize the likelihood of occupancy at the FMR rate.
Regarding property acquisition, the median home value in ZIP 49116 is $934,375. This high median suggests that acquiring properties in this area could be challenging for budget-conscious investors. Without specific data on days on market (DOM) and the percentage of homes that require price cuts, it's difficult to assess how competitive the housing market is. Nonetheless, the high median home value indicates that affordability for acquisition is likely low.
Tenant demand is another critical factor. The population of ZIP 49116 is 86, with a relatively low renter share of 15.2%. Given such a small population, the pool of potential tenants is limited, which could pose challenges for maintaining a steady occupancy rate. Despite the low number of renters, those who qualify for Section 8 assistance will still seek suitable housing options, but competition among landlords for these tenants might be fierce due to the limited demand.
In summary, while the rent math aligns with the Section 8 program's guidelines, the high median home value makes property acquisition less affordable for many investors. Additionally, the low population and renter share suggest a smaller pool of potential tenants, which could impact long-term occupancy and profitability. Therefore, investing in ZIP 49116 should be approached with caution, considering the constraints on both acquisition cost and tenant demand.
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.