Location: Cass County, MI | Metro: Cass County, MI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
U.S. Census Bureau data (2024)
The analysis for the Section 8 program in ZIP code 49130 highlights a significant discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $990, while the Census American Community Survey (ACS) reports the market rent at $742. This creates a gap of $248, which translates to approximately 33.4% of the market rent.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to achieve higher yields. The difference means that properties can be rented out at a rate that is $248 above the typical market rent, increasing the potential profitability of each unit. This is particularly beneficial given that only 23.9% of the residents in this area are renters, suggesting a smaller pool of potential tenants who might seek lower rents. Additionally, the median home value in the area stands at $365,217, indicating a relatively stable and potentially growing real estate market.
The median income in ZIP 49130 is $76,667, which supports the ability of residents to afford the higher rental costs associated with Section 8 vouchers. The voucher system ensures that tenants pay only 30% of their income towards rent, making it feasible for them to cover the $990 FMR without financial strain. For landlords, this means a guaranteed rental income that is closer to the FMR rather than the lower market rent, thereby enhancing the overall yield of their investments.
It's important to note that while the FMR provides a benchmark for rental rates, the actual market conditions and tenant preferences should also be considered. However, the current data strongly suggests that participating in the Section 8 program in ZIP 49130 can be a strategic move for maximizing rental income and ensuring a steady stream of tenants willing to pay the FMR rates.
Data Sources: FMR data from HUD (2027). 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.