Location: Allegan County, MI | Metro: Allegan County, MI
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 | $1,090 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,430 | $324,526 | 0.44% | F |
| 3BR | $1,750 | $370,919 | 0.47% | F |
| 4BR | $2,050 | $446,774 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 49419, located in Hamilton, Michigan, presents an interesting scenario for both renters and landlords alike. The median income for households here stands at $98,324, which is a substantial figure. However, without specific data on the market rate for rental properties, it's challenging to definitively state whether a typical household can afford the local rents. To provide context, let's focus on the Section 8 voucher program.
The Fair Market Rent (FMR) standard for the metro area, effective in fiscal year 2026, is set at $1,380. This means that a household receiving a Section 8 voucher would be able to find a rental property within this budget. Given the high median income, it's reasonable to infer that many households could afford higher rents, potentially above the voucher limit.
With only 6.6% of the population being renters and a total population of 8,681, the rental market in Hamilton is relatively small. This suggests that there might be limited competition among landlords, particularly for those willing to accept Section 8 vouchers. The affordability gap between the median income and the voucher payment standard implies that landlords who are flexible with voucher tenants could tap into a niche market, ensuring steady occupancy rates.
However, landlords should also consider the advantages of renting to cash-paying tenants. While these individuals may offer higher rents, they also come with the assurance of timely payments and fewer administrative complexities associated with voucher programs. For landlords looking to maximize their returns, focusing on cash-paying tenants could be a strategic move, given the potential for higher rental rates in this income bracket.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while the voucher program provides a reliable stream of tenants, the opportunity to charge higher rents to cash-paying households with a median income of $98,324 is significant. Landlords must weigh the benefits of guaranteed payments against the potential for higher income from non-voucher tenants. In ZIP 49419, where the rental market is small, diversifying the tenant mix could be a prudent approach to ensure both stability and profitability.
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.