Section 8 Fair Market Rent (FMR) for ZIP 49424 - 2027

Investment Score for ZIP 49424

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,070
1 Bedroom	$1,340
2 Bedrooms	$1,530
3 Bedrooms	$1,930
4 Bedrooms	$2,280
5 Bedrooms	$2,645
6 Bedrooms	$2,962
7 Bedrooms	$3,199
8 Bedrooms	$3,359

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,530	$322,341	0.47%	F
3BR	$1,930	$389,927	0.49%	F
4BR	$2,280	$472,221	0.48%	F
5BR	$2,645	$632,735	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 49424 (Holland, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 49424 in Holland, MI, for 2026 indicate that a two-bedroom unit should rent for $1500 per month. However, the Zillow median price for a two-bedroom home is $313,249, which translates to a price-to-FMR ratio of 17.4x. This high ratio suggests that actual rental prices in the area are significantly higher than the FMR. For instance, a typical two-bedroom unit might rent for around $2500-$3000 per month based on the price-to-FMR ratio, far exceeding the $1500 FMR limit. Consequently, Section 8 voucher holders face severe constraints in finding affordable housing within their budget. They would likely have to settle for smaller units or seek assistance outside of the voucher program to find suitable accommodation. #### Affordability & Renter Profile With a median household income of $85,478, the affordability of housing is a significant concern for renters in ZIP 49424. The 23.8% of residents who are renters must navigate a market where a two-bedroom unit costs approximately 21.1% of the median income. This percentage indicates that while it is not unreasonably high, the actual rental prices could still be challenging for many renters, especially those relying solely on their income without additional financial support. Given the occupancy rate of 94.6%, the market appears to be relatively tight, with few vacancies available. This tightness can drive up rental prices further, making it even harder for low-income renters to find affordable housing. #### Investor Angle From an investor perspective, the ZIP code 49424 presents a mixed picture. While the occupancy rate suggests strong demand for rental properties, the high price-to-FMR ratio implies that the actual rental rates are well above the FMR limits set by the government. This means that landlords who rely on Section 8 vouchers will need to adjust their expectations regarding rental income. If a landlord were to rent a two-bedroom unit at the FMR of $1500, they would be operating below market rates, potentially leading to lower cash flow. On the other hand, if they aim to maximize profits by renting closer to the market rate of $2500-$3000, they would likely not be able to attract Section 8 voucher holders due to the strict income limits. The investment grade for this ZIP code would depend on the investor's goals. If the goal is to cater specifically to Section 8 voucher holders, the ZIP code might be considered a lower-grade investment due to the limited pool of potential tenants and the need to operate at below-market rental rates. However, if the investor is willing to accept a broader range of tenants, including those who do not rely on vouchers, the ZIP code could be seen as a higher-grade investment due to its strong demand and relatively high median income. #### Specific Actionable Insights 1. **Target Non-Voucher Tenants**: Given the high price-to-FMR ratio, landlords should consider targeting non-voucher tenants who can afford market rates. This strategy would likely yield better cash flow and profitability. For example, renting a two-bedroom unit at $2500 per month instead of the FMR of $1500 would increase monthly income by over 66%. 2. **Focus on Smaller Units**: If catering to Section 8 voucher holders is a priority, focusing on smaller units such as one-bedroom or studio apartments might be more practical. These units have lower FMRs ($1320 for 1BR and $1030 for 0BR), which are more in line with the income limits of voucher recipients. This approach would allow landlords to fill units more easily and comply with the program requirements. 3. **Consider Property Value Appreciation**: Despite the challenges posed by the high price-to-FMR ratio, the median home value of $313,249 for a two-bedroom unit suggests strong property appreciation potential. Investors looking to hold properties long-term might benefit from the increasing value of their assets, even if short-term rental income is constrained by FMR limits. #### Bottom Line For Section 8-focused investors, the ZIP code 49424 presents a challenging environment due to the high price-to-FMR ratio and limited pool of voucher holders. Therefore, the recommendation would be to **Skip** this ZIP code unless the investor is willing to adapt their strategy to target a broader range of tenants beyond just those using Section 8 vouchers. If the goal is to invest in a location with strong demand and potential for property value appreciation, then the ZIP code could be considered, but with a focus on maximizing rental income rather than strictly adhering to FMR guidelines.

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.