Location: Holland-Grand Haven, 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 | $1,310 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $295,957 | 0.56% | F |
| 3BR | $2,150 | $369,079 | 0.58% | F |
| 4BR | $2,470 | $431,013 | 0.57% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 49418 in Grandville, MI, hinges on the balance between yield and stability. To evaluate yield, we consider the Fair Market Rent (FMR) for the fiscal year 2024, which is set at $1,270. This figure is notably lower than the market rent of $1,881, indicating a potential for higher-than-average rental income if properties can be rented closer to market rates. However, the median home value of $377,143 suggests that the initial investment required to enter this market is substantial.
Stability in this context is assessed through the percentage of renters, days on market (DOM), and average household income. With 30.7% of residents being renters, the demand for rental housing is moderate. The DOM of 8 days signals a relatively quick turnover rate, which is positive for cash flow but could also indicate less stability if tenants frequently move out. The average household income of $84,846 provides a solid foundation for rental payments, suggesting that most tenants can afford their rent.
Based on these figures, ZIP 49418 leans towards a steady-cashflow zone. The key drivers of this assessment include the FMR being significantly below the market rent, indicating a strong potential for achieving higher yields. Additionally, the average household income supports the ability of residents to pay rent consistently. While the percentage of renters is not exceptionally high, it is sufficient to maintain a stable market. The quick DOM rate is a double-edged sword; while it ensures timely cash flow, it may also imply frequent tenant turnover, which could affect long-term stability.
To summarize, the combination of a moderate renter population, quick market turnover, and decent household incomes positions this area as a reliable source of rental income with some volatility due to the rapid turnover rate. Landlords and small-portfolio investors should weigh these factors carefully when considering an investment in Grandville, MI.
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.