Location: Montcalm 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,790 | $329,838 | 0.54% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 49326 for Section 8 investments must evaluate several key factors. Begin with the Fair Market Rent (FMR) of $1200 for the fiscal year 2024. This figure represents the maximum amount that can be charged for a Section 8 voucher in this area.
1) Does FMR cover debt service? For a property valued at $302,913, calculate your debt service. Assuming a typical mortgage rate of 4.5% and a 20-year term, the annual debt service would be approximately $23,000. With an FMR of $1200 per month, the annual income would be $14,400, which does not cover the debt service. Therefore, the answer is No. The FMR does not sufficiently cover the debt service on a $302,913 property, making it financially unviable for landlords seeking to rely solely on Section 8 vouchers.
If you still wish to proceed despite the FMR not covering debt service, consider the following:
2) Is market rent above, at, or below FMR? The market rent in ZIP 49326 is $996 according to the Census ACS data. This means the market rent is below the FMR of $1200. Landlords who can charge the FMR will have a higher rental income compared to the market rate, providing a financial advantage. However, this also indicates that the local rental market is less expensive, which could affect the number of tenants willing to pay the higher FMR.
3) Is there sufficient demand? In ZIP 49326, 6.3% of residents are renters. The days on market (DOM) data is not available, but generally, a lower percentage of renters might indicate a smaller pool of potential Section 8 tenants. Given the limited demand, landlords must weigh the benefits of higher rental income against the risk of slower tenant turnover. If the local rental market is competitive and landlords struggle to find tenants willing to pay the FMR, the answer is It Depends. Sufficient demand is crucial, and without a clear understanding of how quickly properties are rented, it's challenging to make a definitive recommendation.
In conclusion, for ZIP 49326, the decision to invest in Section 8 properties hinges on the ability to cover debt service with the FMR and the presence of enough demand to sustain tenancy. Since the FMR does not clear the debt service on a $302,913 property, investment is not advisable unless additional sources of income can be secured or the property value is significantly lower. Additionally, landlords must consider the market rent being below the FMR and the limited rental population when assessing the feasibility of such investments.
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.