Location: Jackson, MI | Metro: Battle Creek, 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 | $760 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $246,068 | 0.56% | F |
U.S. Census Bureau data (2024)
To classify ZIP code 49237, we must analyze both the yield and stability metrics based on the provided data. The Federal Market Rent (FMR) for ZIP 49237 in fiscal year 2024 is set at $960, which is significantly higher than the market rent of $767. This difference indicates a potential for higher rental yields if properties can be leased at or near the FMR rate.
The median home value in ZIP 49237 stands at $239,435. Given that the FMR exceeds the market rent, it suggests that there is an opportunity for landlords to achieve above-average returns. However, the percentage of renters in the area is only 8.7%, which is relatively low. This could imply a smaller pool of potential tenants, thereby affecting occupancy rates and the overall cash flow stability.
The average household income in ZIP 49237 is $66,956. While this figure provides insight into the financial capability of residents, the lack of data on the number of days on market (DOM) makes it difficult to assess how quickly properties can be rented out once they become available. A lower DOM would indicate a stable rental market where properties are leased rapidly, whereas a higher DOM might suggest challenges in finding tenants.
Based on these figures, ZIP 49237 leans towards being a high-yield market with moderate to low stability. The key driver for this classification is the substantial gap between the FMR and the market rent, which presents an opportunity for higher rental income. However, the low percentage of renters and the unknown DOM suggest that achieving consistent cash flow could be challenging.
A high-yield/low-stability market often attracts investors looking for short-term gains through property flips or quick rentals rather than long-term, steady cash flow. The potential for higher rental income is evident, but the risks associated with maintaining occupancy and ensuring a steady stream of payments are also present. Therefore, this ZIP code would likely appeal more to investors who are willing to manage their properties actively and can tolerate some level of risk.
To make a definitive decision, consider the following:
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.