Location: Muskegon-Norton Shores, 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 | $1,110 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,790 | $319,729 | 0.56% | F |
U.S. Census Bureau data (2024)
The ZIP code 49318 presents an interesting scenario for both renters and landlords. The median income here stands at $81,591, which contrasts sharply with the market rate rent of $990 as reported by the Census Bureau's American Community Survey (ACS). This indicates that the average household has a significant disposable income beyond their rent obligations, making them less sensitive to rental price increases.
However, when considering the federal payment standard for housing vouchers, which is set at $1310 for fiscal year 2024, it becomes apparent that there is a substantial gap between what the market demands and what voucher recipients can afford. This means that landlords who accept vouchers might be at a disadvantage compared to those who rely on market-rate tenants, as they would receive less compensation for their units.
With only 12.2% of the 1,604 population being renters, the competition among landlords is relatively low. This suggests that landlords have a smaller pool of potential tenants to draw from, but also implies that there is less pressure to lower rents to attract tenants. However, the affordability gap means that landlords must consider the trade-offs between accepting higher-paying market-rate tenants and potentially securing a steady income stream from voucher holders.
For landlords in ZIP 49318, the key takeaway is that while market-rate rents are affordable for most households, the difference between market rates and voucher payments is considerable. Landlords should weigh the benefits of accepting vouchers—such as reduced vacancy rates and stable income—against the lower payment amounts. In a competitive environment with limited renters, landlords might find it advantageous to offer a mix of both voucher and market-rate options to maximize occupancy and revenue.
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.