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 | $1,150 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,850 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $275,508 | 0.52% | F |
| 3BR | $1,850 | $339,924 | 0.54% | F |
| 4BR | $2,120 | $377,954 | 0.56% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering Cedar Springs, MI (ZIP 49319), often have several key concerns when it comes to investing in Section 8 properties. Let's address these objections head-on using the available data.
Will FMR $1270 (zip FY 2024) cover the mortgage on a $342,017 home?
The Fair Market Rent (FMR) for ZIP 49319 is set at $1270 for fiscal year 2024. To determine if this will cover the mortgage on a $342,017 home, we need to calculate the monthly mortgage payment. Assuming a fixed-rate mortgage with an interest rate of 4% and a 30-year term, the monthly payment would be approximately $1650. This means that the FMR of $1270 does not fully cover the mortgage payment. Investors would need to either find a property with a lower purchase price or consider other income sources to make up the difference.
Is there enough renter demand at 9.5%?
Rental demand in ZIP 49319 is relatively low, with only 9.5% of the population renting their homes. This can be a concern for investors looking to ensure steady occupancy. However, the percentage of renters does not tell the whole story. The actual number of potential tenants depends on the total population size and the number of units available. To get a clearer picture, further research into the local rental market trends and vacancy rates would be necessary.
Will vouchers keep pace with $1,080 market rents?
The market rent for ZIP 49319 is $1,080 per month. The question of whether Housing Choice Vouchers will cover this amount depends on the voucher amount and the policies of the local housing authority. According to HUD guidelines, voucher payments should generally cover at least 90% of the FMR. Given the FMR of $1270, vouchers might cover around $1143, which is close but slightly below the market rent. Landlords could face a shortfall unless they are willing to accept a lower rent or the tenant contributes additional funds from their own pocket. It's important to check with the local housing authority for precise details on voucher amounts and any adjustments they plan to make in response to market conditions.
While the data provides some answers, it also highlights areas where further investigation is needed. For instance, the exact number of available Section 8 vouchers and the historical trend of voucher increases in relation to market rents would give a more complete understanding of the financial viability of Section 8 investments in Cedar Springs.
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.