Location: Hillsdale County, MI | Metro: Hillsdale County, MI
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 | $790 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $198,362 | 0.57% | F |
| 3BR | $1,410 | $254,263 | 0.55% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 49266, located in Osseo, MI, within the Hillsdale County metro area, reveals a clear rental market landscape. The HUD Fair Market Rent (FMR) for the area is set at $990 for fiscal year 2026, which is below the current market rent of $1,108 as reported by the Census ACS. This discrepancy indicates that voucher tenants will typically cashflow at the FMR rate, but only marginally. Landlords and small-portfolio investors should focus on properties that can be rented out at or near the FMR without significant concessions to ensure positive cash flow.
To further understand the investment potential, the median home value in the area is $200,624. Using this figure, we can calculate a rent-to-price ratio. Given the market rent of $1,108, the annual rent would be approximately $13,296. Dividing this by the median home value yields a rent-to-price ratio of about 6.6%, suggesting a relatively stable rental market where property values are not excessively inflated compared to rental income.
In terms of the days on market (DOM) and price-cut share, these metrics are currently not available. However, given the modest difference between the FMR and market rent, it is likely that the rental market remains competitive, and landlords may need to adjust their expectations for premium units. Premium units in this context would be those that can command rents above the FMR without significantly impacting cash flow.
The strongest investor angle in ZIP 49266 is stability. With a reasonable rent-to-price ratio and a market rent slightly above the FMR, investors can expect steady cash flows without the risk of significant price fluctuations. This makes the area particularly attractive for those seeking long-term, consistent returns rather than rapid appreciation or high-risk, high-reward scenarios.
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.