Location: Cass County, 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 | $810 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $900 | $143,291 | 0.63% | D |
| 2BR | $1,120 | $184,655 | 0.61% | D |
| 3BR | $1,460 | $231,495 | 0.63% | D |
| 4BR | $1,570 | $302,997 | 0.52% | F |
| 5BR | $1,821 | $443,384 | 0.41% | F |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord in ZIP code 49120, located in Niles, MI, include tenant turnover and vacancy exposure. The market rent stands at $997, which is slightly below the Fair Market Rent (FMR) of $1000 for FY 2024. This minor discrepancy might lead to higher tenant turnover as some tenants seek better rental deals outside of the program. Additionally, the average days on market (DOM) for properties in this area is 25 days, indicating a moderate risk of vacancy exposure. Should a property remain vacant for an extended period, it can significantly impact the cash flow and profitability of the investment.
The deferred maintenance exposure is another concern. With a typical home value of $204,990 and a median household income of $65,148, there is a notable gap between the cost of maintaining a property and the financial capability of the average resident. This suggests that landlords may face additional costs to keep their properties up to standard, as tenants might not be able to contribute to necessary repairs and upkeep.
However, these risks are somewhat mitigated by the high renter share in the area, which is 20.9%. High renter density generally translates into higher demand for housing vouchers, making it easier for landlords to find tenants who qualify for Section 8 assistance. This demand can stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 49120 is moderate.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.