Location: Oceana County, MI | Metro: Newaygo 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 | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $204,129 | 0.49% | F |
| 3BR | $1,280 | $249,994 | 0.51% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 49421 in Hesperia, MI, within the Oceana County, MI metro area, reveals a favorable cashflow scenario. The HUD Fair Market Rent (FMR) for the metro scope in fiscal year 2026 is set at $970, while the Census ACS reports an average market rent of $863. This indicates that voucher tenants will cashflow at FMR levels, providing a significant buffer for landlords.
To further analyze the investment potential, the median home value in ZIP 49421 is $196,501. Using this figure, we can derive the rent-to-price ratio. With an average market rent of $863, the annual rent would be approximately $10,356, leading to a rent-to-price ratio of about 5.2%. This ratio suggests that rental income is relatively high compared to property values, making it attractive for investors seeking steady cashflow.
The dynamics between renting and buying in this market do not significantly impact the decision-making process for investors. The median Days on Market (DOM) is not available, which means there is no data on how long homes typically stay on the market before selling. Additionally, the share of homes that require a price cut is 0.1%, indicating that the housing market is stable and homes sell close to their asking price.
The strongest angle for Section 8 investors in this ZIP code is cashflow. Given the discrepancy between the HUD FMR and the actual market rent, landlords can expect to generate positive cashflow without the need for premium units. This makes the area particularly appealing for those looking to invest in properties that provide consistent financial returns.
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.