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 | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $274,424 | 0.48% | F |
| 3BR | $1,750 | $328,057 | 0.53% | F |
| 4BR | $1,750 | $476,545 | 0.37% | F |
| 5BR | $2,030 | $610,557 | 0.33% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 49127, which encompasses Stevensville, MI, within the Berrien County and Niles, MI MSA, reveals several key points. The HUD Fair Market Rent (FMR) for FY 2024 stands at $1240, significantly higher than the market rent of $938, as measured by Zillow's ZORI index. This disparity suggests that voucher tenants will generally cashflow at the FMR rate, providing a strong financial advantage for landlords who accept vouchers.
To further analyze the investment potential, consider the median home value of $326,341. Using the market rent figure, the rent-to-price ratio calculates to approximately 1.4%, indicating a relatively low rental yield compared to the property value. However, given the higher FMR rate, the effective rent-to-price ratio for voucher tenants is around 2.0%, which is more favorable for long-term rental investments.
The dynamics between renting and buying are also noteworthy. With a median Days on Market (DOM) of N/A and a price-cut share of 0.2%, it appears that the housing market is stable and that homes rarely need to be discounted to sell. This stability supports the idea that properties in this area are likely to retain their value over time, making them attractive for buy-and-hold strategies.
In conclusion, the strongest angle for investors in ZIP 49127 is cashflow. The difference between the market rent and the HUD FMR provides a significant financial benefit for landlords accepting Section 8 vouchers, ensuring positive cashflow even with standard units. Stability in the housing market adds an additional layer of security to these investments.
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.