Location: Muskegon-Norton Shores, 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 | $950 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $291,461 | 0.47% | F |
| 3BR | $1,740 | $339,059 | 0.51% | F |
| 4BR | $2,040 | $405,901 | 0.5% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 49404, Coopersville, MI, reveals a favorable environment for cashflow generation. The HUD Fair Market Rent (FMR) for the area is set at $1080 for fiscal year 2024. In contrast, the market rent, as per Census ACS data, stands at $975. This indicates that voucher tenants can generate positive cashflow at the HUD FMR, even without premium units.
To further analyze the investment potential, consider the median home value in the area, which is $352,006. Using this figure, we can derive the rent-to-price ratio. With an average monthly rent of $975, the annual rent would be approximately $11,700, resulting in a rent-to-price ratio of about 3.32%. This ratio suggests that the rental income generated from properties in this ZIP code is relatively low compared to the property values, indicating a strong preference among residents for owning homes over renting.
The dynamics between renting and buying in the Coopersville area are also noteworthy. The median days on market (DOM) and the percentage of price cuts are currently not available, but these metrics would typically indicate how quickly properties are selling and whether sellers are having to reduce their asking prices. In the absence of these figures, it's important to note that the strong preference for homeownership could impact the speed at which rental properties turn over and the ease of finding long-term tenants.
The strongest angle for investors in ZIP 49404 is cashflow. Given the disparity between the HUD FMR and the actual market rent, landlords can expect to see a positive cashflow when renting to voucher holders, making this a solid investment opportunity for those looking to generate consistent rental income.
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.