Location: Hillsdale County, 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 | $810 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $195,365 | 0.71% | D |
U.S. Census Bureau data (2024)
The ZIP code 49245 is home to 4,547 residents, with 24.7% being renters. This indicates that while there is a notable portion of renters, the majority of the population still owns their homes. The median household income stands at $62,206, which provides a baseline for understanding the financial capacity of potential tenants.
Average market rent in this area is $849, which represents approximately 13.6% of the median household income. This suggests that rental costs are relatively affordable compared to the income levels of the residents. However, it's important to note that the Fair Market Rent (FMR) set by HUD for FY 2024 is $1,000, indicating that landlords may have some flexibility in pricing above the market average without significantly deterring tenants.
The discrepancy between the market rent and the FMR implies a moderate demand for Section 8 vouchers. Landlords can expect tenants who rely on these vouchers to have an income level that aligns closely with the lower end of the local income spectrum. These tenants will likely be seeking housing options that match or fall below the $1,000 FMR threshold.
To summarize, ZIP 49245 is not heavily dominated by renters but does have a significant portion of its population looking for rental housing. With an FMR of $1,000, landlords can anticipate a steady flow of tenants using Section 8 vouchers, though they should be prepared for the associated administrative processes and income verification requirements. Tenants will typically have an income around or below the median, making the $849 market rent a reasonable expectation for most.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.