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 | $860 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $223,944 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1030 for ZIP 49126 (Sodus, MI) in fiscal year 2024 will adequately cover the mortgage on a home priced at $218,292. To assess this, consider that the typical monthly mortgage payment for a home in this price range, assuming a 30-year fixed-rate loan at an average interest rate of 5%, would be around $1130. This means that the FMR alone would not cover the mortgage payment, falling short by approximately $100 per month.
The next objection could be whether there is sufficient rental demand in Sodus, given that only 19.5% of the housing units are rented. This percentage suggests a relatively low demand for rental properties. However, it's important to note that the demand for affordable housing remains consistent even in areas with lower overall rental rates. The key is to target the right demographic and ensure that your property meets the needs of potential tenants who are looking for affordable options.
A final concern might be whether Section 8 vouchers will keep pace with the market rents of $992. According to HUD guidelines, the FMR is used as a benchmark to determine the maximum allowable rent for Section 8 properties. In ZIP 49126, the FMR of $1030 is slightly above the market rent, indicating that voucher holders should be able to afford a typical rental unit. However, the data does not provide a direct comparison of past and present voucher amounts, so it's uncertain if the vouchers will continue to match inflation and rising costs. Landlords should monitor local HUD adjustments and consider the stability of funding sources when making investment decisions.
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.