Location: Grand Rapids-Wyoming, MI | Metro: Grand Rapids-Wyoming, MI HUD Metro FMR Area
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 | $1,960 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,450 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,630 |
| 5 Bedrooms | $4,211 |
| 6 Bedrooms | $4,716 |
| 7 Bedrooms | $5,093 |
| 8 Bedrooms | $5,348 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,450 | $449,894 | 0.54% | F |
| 3BR | $3,180 | $525,634 | 0.6% | D |
| 4BR | $3,630 | $695,841 | 0.52% | F |
| 5BR | $4,211 | $884,417 | 0.48% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 49301 (Ada, MI, Grand Rapids-Wyoming, MI HUD Metro FMR Area) is nearly balanced. The Fair Market Rent (FMR) for FY 2024 is set at $2050, which is slightly higher than the reported market rent of $2,027 based on Census ACS data. This indicates that properties priced at the FMR level should be competitive with market rates.
Acquisition in this area is moderately affordable. The median home value stands at $648,960, which is a significant investment but not prohibitive. The average Days on Market (DOM) is 11 days, suggesting a brisk sales pace. Additionally, only 0.1% of listings have been subject to price cuts, indicating strong seller's market conditions where homes are likely to sell close to asking price.
Tenant demand in ZIP 49301 is relatively low. With a total population of 19,846, only 5.9% are renters. This means there are approximately 1,170 potential renters in the area. Given the limited number of renters, it may be challenging to attract and retain tenants, especially if there is competition from owner-occupied homes.
In summary, the rent math in ZIP 49301 is favorable, with FMR aligning closely with market rents. Acquisition costs are high but manageable, with quick turnover and minimal price adjustments. However, the tenant demand is weak due to a low renter share of the population. Landlords and small-portfolio investors should carefully consider the potential challenges in finding and retaining tenants before making investments in this area.
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.