Location: Jackson, 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 | $1,000 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $172,327 | 0.78% | D |
| 3BR | $1,760 | $221,133 | 0.8% | D |
| 4BR | $1,760 | $259,021 | 0.68% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 49254, located in Michigan Center, MI, within the Jackson, MI MSA metro area, reveals several key points for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 49254 in fiscal year 2024 is set at $1040, which is notably lower than the market rent of $1273 as reported by the Census ACS. This indicates that landlords can expect to charge above the FMR, potentially increasing their profitability by $233 per unit monthly.
Regarding the affordability of acquisitions, the median home value in ZIP 49254 stands at $198,485. However, due to limited data on days on market (DOM) and the percentage of homes needing price cuts, it's challenging to determine the exact ease of acquiring properties. Nonetheless, the median home value suggests that property purchases are within reach for many investors, especially when considering the potential for higher-than-FMR rents.
Tenant demand is another critical factor. With a total population of 3,484, and 16.6% of residents being renters, there are approximately 578 rental units occupied by tenants. While this represents a smaller pool of potential tenants compared to larger metropolitan areas, the demand is steady and can be managed effectively with well-located properties.
In conclusion, the rent math in ZIP 49254 works favorably for landlords, allowing them to charge significantly above the FMR. Acquisitions are relatively affordable given the median home value, though additional metrics such as DOM and price-cut percentages would provide a clearer picture of market conditions. Tenant demand is present but limited, making strategic location choices crucial. Overall, ZIP 49254 presents a viable investment opportunity for those willing to capitalize on the favorable rent-to-value ratio and manage a smaller but stable tenant base.
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.