Location: Newaygo County, MI | Metro: Lake 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 | $770 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,790 |
| 5 Bedrooms | $2,076 |
| 6 Bedrooms | $2,325 |
| 7 Bedrooms | $2,511 |
| 8 Bedrooms | $2,637 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $169,356 | 0.64% | D |
| 3BR | $1,430 | $224,681 | 0.64% | D |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 49304 (Baldwin, MI) for Section 8 purposes, they must follow a structured decision-making process based on the following criteria:
1. Does the Fair Market Rent (FMR) of $990 cover the debt service on a $142,196 property?
To determine if the FMR clears the debt service, calculate the expected monthly mortgage payment. Assuming a typical 30-year fixed-rate mortgage at an interest rate of 4%, the monthly mortgage payment would be approximately $677. This does not include property taxes, insurance, and maintenance costs, which could add another $100-$200 per month depending on local rates and the condition of the property.
Given that the FMR is $990, it exceeds the estimated total monthly debt service of $777-$877, covering the costs comfortably. Therefore, the answer to the first question is Yes.
2. Is the market rent of $837 above, at, or below the FMR?
The market rent of $837 is below the FMR of $990. This means that landlords can potentially charge up to the FMR without losing tenants who rely on Section 8 vouchers. However, it also suggests that there might be competition from properties offering lower rents, making it important to ensure the property is well-maintained and attractive to potential tenants.
The answer to the second question is Below.
3. Are 25.5% of residents renting, plus the unknown days on market (DOM), sufficient to meet demand?
In ZIP code 49304, 25.5% of residents are renters. This percentage indicates a moderate level of rental demand. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are typically leased in this area. To make a definitive decision, additional research into local rental vacancy rates and leasing trends is necessary.
Based on the available data, the answer to the third question is It Depends. The rental demand is present but requires further investigation to understand the speed at which properties are rented out.
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.