Location: Newaygo 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 |
|---|---|---|---|---|
| 2BR | $1,380 | $220,402 | 0.63% | D |
| 3BR | $1,790 | $286,268 | 0.63% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 49327, located in Grant, MI, within the Newaygo County, MI metro area, reveals several key points for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1200. However, the market rent based on Census ACS data stands at $931. This indicates that the actual market rent is below the FMR, suggesting that while it's possible to charge the higher rate, the local market may not fully support it without adjustments.
Moving on to the affordability of acquisition, the median home value in the zip code is $261,547. Unfortunately, the data does not provide insights into the typical days on the market (DOM) or the percentage of homes that required price cuts to sell. Therefore, we cannot definitively assess the ease of acquiring properties at this time. Landlords should conduct further research to understand current market conditions regarding property listings and sales.
Regarding tenant demand, the population of ZIP 49327 is 8,887, with a renter share of 13.5%. This means that approximately 1,198 residents are potential tenants. While the number of renters is relatively low compared to the overall population, it still represents a significant pool of potential tenants for small-scale rental investments.
Verdict: In ZIP 49327, the rent math is challenging due to the discrepancy between FMR and market rent. Acquisition affordability remains unclear without additional data on DOM and price-cut shares. Tenant demand exists but is limited to a smaller pool compared to larger metropolitan areas. For landlords looking to enter this market, careful consideration of pricing strategies and thorough market research are essential to ensure profitability and sustainability of their investment.
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.