Location: Holland-Grand Haven, MI | Metro: Holland-Grand Haven, 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 | $1,180 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,540 |
| 5 Bedrooms | $2,946 |
| 6 Bedrooms | $3,300 |
| 7 Bedrooms | $3,564 |
| 8 Bedrooms | $3,742 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,700 | $341,408 | 0.5% | F |
| 3BR | $2,140 | $397,477 | 0.54% | F |
| 4BR | $2,540 | $440,651 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 49401, located in Allendale, MI, presents an interesting mix of yield and stability factors for real-estate investors. On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,400. This figure is notably higher than the current market rent of $1,114, indicating potential upside for rental income if the FMR is achieved. The median home value in the area is $402,561, which is relatively high and suggests that properties are expensive to acquire but can command higher rents due to their location and quality.
Moving to the stability axis, 49401 has a substantial proportion of renters at 42.7%, which is a positive sign for landlords as it indicates a steady demand for rental properties. However, the lack of data on the average number of days on the market (DOM) for rentals could be a concern, as it might imply either a very competitive rental market or simply a lack of recent activity. The median household income in the area is $74,880, providing tenants with a reasonable income level to support rent payments, contributing to the overall stability of the market.
Given these figures, 49401 does not fit neatly into a high-yield/low-stability flip-style market category. Instead, it leans towards being a steady-cashflow zone, thanks to the strong presence of renters and the solid median income. However, there is also potential for higher yields if the market adjusts to the FMR levels. Therefore, while the market offers stable cash flows, it also presents opportunities for increased returns, making it a balanced option for both conservative and opportunistic investors.
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.