Location: Allegan County, MI | Metro: Barry County, 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 | $1,210 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,330 |
| 5 Bedrooms | $2,703 |
| 6 Bedrooms | $3,027 |
| 7 Bedrooms | $3,269 |
| 8 Bedrooms | $3,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,210 | $280,798 | 0.43% | F |
| 2BR | $1,590 | $321,503 | 0.49% | F |
| 3BR | $1,960 | $370,151 | 0.53% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) set at $1,490 for the metro area in fiscal year 2026, landlords in ZIP code 49344 (Shelbyville, MI) can expect a steady demand for rental properties. The Census ACS reports a market rent of $1,188, indicating that there's room for pricing adjustments without deterring tenants. Given the median home value of $331,407, it's clear that homeownership is a significant factor in the local economy, yet the 17.3% renter share shows that there remains a substantial segment of the population looking for rental options. The median income of $84,661 suggests that residents have the financial capability to afford higher rents, which aligns well with the FMR. Although the exact days on market (DOM) and percentage of price cuts are not available, the data implies a balanced rental market where both landlords and tenants find reasonable terms. This balance is crucial for maintaining a stable occupancy rate and ensuring consistent cash flows for small-portfolio investors. With these figures in mind, the Section 8 program presents a viable option for landlords, offering a reliable source of rental income at a rate of $1,490 per month, which is above the current market rent but still within reach for many local renters. The program ensures timely payments and reduces the risk of vacancies, making it an attractive choice for those who want to avoid the uncertainties associated with non-subsidized rentals.
The $1,490 FMR provides a benchmark for rental property values, allowing landlords to adjust their pricing strategies accordingly. It's important to note that the difference between the FMR and the actual market rent of $1,188 offers a buffer for landlords who might need to make slight adjustments to their rent to stay competitive. However, the median income of $84,661 indicates that most residents can comfortably cover the FMR without significant strain, supporting the viability of Section 8 contracts in this area. The median home value of $331,407 also suggests a robust housing market, where rental properties can command higher rates due to the high cost of homeownership. The 17.3% renter share demonstrates that while homeownership is prevalent, there is still a notable portion of the population seeking rental accommodations, creating a stable tenant pool for landlords.
In conclusion, the data from ZIP code 49344 supports the idea that participating in the Section 8 program can be financially beneficial for landlords and small-portfolio investors. The program's guaranteed monthly rent of $1,490, coupled with the strong local economy and the ability to attract tenants willing to pay this amount, makes it a solid investment strategy. Landlords should consider the advantages of reduced vacancy risks and stable income when evaluating their participation in the Section 8 program. Verdict: Section 8 is a sound investment strategy in ZIP 49344.
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.