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 | $850 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $321,641 | 0.38% | F |
| 3BR | $1,600 | $380,507 | 0.42% | F |
| 4BR | $1,600 | $528,664 | 0.3% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP 49128, located in Three Oaks, MI, include significant tenant turnover due to the disparity between the market rent of $1,034 and the Fair Market Rent (FMR) set at $1,130 for FY 2024. This difference can lead to tenants struggling to afford the rent, resulting in frequent moves and higher vacancy rates. Vacancy exposure is another concern, as the days on market (DOM) for rental properties in the area is currently unavailable, which indicates a lack of historical data to predict how long units might remain vacant. Additionally, there is a risk of deferred maintenance costs. With a typical home value of $347,969 and a median income of $67,398, landlords must be prepared to handle any necessary repairs or maintenance without immediate financial relief from their tenants.
However, these risks are tempered by the high concentration of renters in the area, with 16.9% of residents being renters. High renter density often correlates with higher demand for housing vouchers, which can stabilize occupancy and provide a steady stream of income through the Section 8 program. The combination of market conditions and the proportion of renters suggests that while there are challenges, they are balanced by opportunities for stable tenancy.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.