Location: Barry County, 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 | $1,160 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,790 | $340,659 | 0.53% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 49325 is poised for stability and cautious optimism over the next 12-24 months, given the current median home value of $304,372. This figure serves as a baseline for understanding the overall valuation of properties in the area. The fact that the percentage of listings reduced is not available suggests a market where sellers are holding firm on their asking prices, indicating strong seller confidence and potentially limited supply. A similar lack of data on the median days on market (DOM) could imply that homes are selling relatively quickly, which further supports the notion of a balanced or slightly favoring sellers market.
On the rental side, the Fair Market Rent (FMR) for ZIP 49325 in fiscal year 2024 is set at $1200, while the current market rent stands at $754 according to the Census ACS. This significant gap between the FMR and the actual market rent indicates an underpriced rental market. Landlords and small-portfolio investors can expect rental rates to trend upwards towards the FMR, providing an opportunity for increased cash flow without necessarily increasing the vacancy rate. As rental demand typically follows home ownership trends, the stable home values and quick sales suggest that there will be a steady demand for rentals.
For long-term hold investors, the setup implies a realistic appreciation thesis. Given the current median home value and the upward pressure on rental rates, property values are likely to appreciate gradually. However, the absence of historical data on reductions and DOM makes it difficult to pinpoint the exact rate of appreciation. What can be inferred is that the market conditions support steady growth rather than rapid inflation. Investors should focus on maintaining their properties and positioning them competitively in the rental market to benefit from the gradual increase in both property values and rental income.
Investors should also consider diversifying their portfolio to include a mix of rental and for-sale properties. The rental market's potential for growth provides immediate cash flow benefits, whereas the for-sale market's stability offers a solid foundation for long-term capital appreciation. Both segments of the market present opportunities for profit, but require careful management and strategic planning to maximize returns.
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.