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 | $780 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,110 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $268,708 | 0.41% | F |
| 3BR | $1,390 | $314,101 | 0.44% | F |
| 4BR | $1,470 | $432,413 | 0.34% | F |
U.S. Census Bureau data (2024)
ZIP 49249, located in Jerome, MI, within the Hillsdale County, MI metro area, can be best described as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) and the actual market rental rates. For fiscal year 2024, the FMR for ZIP 49249 is set at $1180, while the current market rental rate stands at $1,573. This discrepancy means that landlords participating in the Section 8 program can expect to receive higher rental payments than what is typically considered fair market value, thus providing a stable and reliable cash flow.
The median home value in ZIP 49249 is $291,818, which is relatively low compared to many other areas. However, the focus here is on rental properties and their suitability for a Section 8 portfolio. The 0.2% price-cut share indicates that there is minimal competition forcing landlords to lower their rents, preserving the potential for higher income. The N/A-day DOM (Days on Market) suggests that properties in this ZIP code are either rented quickly or there is limited data available, which could imply a steady demand for rental housing.
While the 10.9% renter share and median income of $82,407 might suggest diversification opportunities, the primary benefit of including ZIP 49249 in a Section 8 portfolio lies in its ability to generate consistent cash flow due to the favorable FMR-to-market rental rate spread. Landlords can leverage this to ensure they are receiving adequate compensation, even if the property values themselves do not appreciate significantly over time.
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.