Location: Hillsdale County, MI | Metro: Jackson, 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 | $830 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,450 | $318,516 | 0.46% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 49246 reveals key insights for landlords and small-portfolio investors. To determine if the rent math works, compare the Fair Market Rent (FMR) of $1230, which is the benchmark for the fiscal year 2024, against the market rent of $1,083 reported by the Census American Community Survey (ACS). The FMR is higher, indicating that landlords can potentially charge above the market rate, thereby improving their financial margins.
Evaluating the affordability of property acquisitions, the median home value in ZIP 49246 stands at $295,686. This figure is critical for assessing whether buying properties aligns with investment budgets. Given the lack of data on Days on Market (DOM) and the percentage of homes needing price cuts, it's challenging to gauge the current speed of sales and negotiation flexibility. However, the median home value suggests that while acquisitions are possible, they may be at a premium compared to other areas.
To assess tenant demand, consider the population size of 3,382 residents and the relatively low 5.7% renter share. These numbers indicate a limited pool of potential tenants, suggesting that landlords must compete effectively to attract renters. Additionally, the small renter share implies a strong preference for homeownership in the area, which could affect the ability to fill rental units consistently.
In conclusion, while the rent math in ZIP 49246 supports charging above-market rates, the median home value indicates that acquisitions will require substantial capital. Tenant demand is constrained by a low renter share and a small overall population, which may limit the number of available renters. Therefore, investments in this ZIP code should be approached with caution, considering the balance between higher rent potential and the challenges of acquiring properties and maintaining tenant occupancy.
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.