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 |
|---|---|---|---|---|
| 1BR | $820 | $499,601 | 0.16% | F |
| 2BR | $1,070 | $572,427 | 0.19% | F |
| 3BR | $1,410 | $669,708 | 0.21% | F |
| 4BR | $1,420 | $928,630 | 0.15% | F |
| 5BR | $1,647 | $1,560,253 | 0.11% | F |
U.S. Census Bureau data (2024)
New Buffalo, MI, located in ZIP code 49117, is a strategic fit for a Section 8 portfolio due to its characteristics as an appreciation play. The area's median home value stands at $646,251, indicating a relatively stable and high-value market. However, the focus on Section 8 properties suggests an interest in rental dynamics rather than home sales.
The Fair Market Rent (FMR) for ZIP 49117 in fiscal year 2024 is set at $1020, which is higher than the market rent of $866. This creates a positive spread of $154 per unit, making it advantageous for landlords who can secure Section 8 tenants. This spread ensures that the properties can generate a consistent cash flow above the local market rates, providing a solid financial base.
Despite the favorable cash flow potential, New Buffalo, MI, is better categorized as an appreciation play within a Section 8 portfolio strategy. With a 0.1% price-cut share, it indicates that homes in this area rarely need to be discounted to sell, suggesting strong demand and stability in property values. While the Days on Market (DOM) is listed as N/A, the low price-cut share implies that properties in this ZIP code are likely to appreciate over time, making them valuable long-term investments.
The median income of $75,114 in the area supports the notion of appreciation. Higher incomes generally correlate with greater investment in housing, leading to increased property values. Additionally, the 23.5% renter share means there is a substantial portion of the population relying on rentals, including those eligible for Section 8 assistance.
In conclusion, while ZIP 49117 offers a cash-flow advantage with a spread of $154 above the market rent, its primary role in a Section 8 portfolio should be as an appreciation play. The combination of high median home values, low price-cut share, and strong median income positions this ZIP code as a promising investment for long-term growth, complementing the immediate cash flow benefits for landlords.
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.