Location: Oceana County, MI | Metro: Muskegon-Norton Shores, MI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The neighborhood in ZIP code 49425, located in Holton, Michigan, is characterized by a relatively small population of 3,520 residents, where only 16.1% are renters. This indicates a predominantly owner-occupied area, suggesting a community that values stability and long-term residency. The median household income stands at $62,841, which reflects a middle-class neighborhood. The median home value in this area is $249,360, pointing towards modest but comfortable housing options.
From an investment perspective, the Federal Market Rent (FMR) for ZIP code 49425 in fiscal year 2024 is set at $1,010, while the average market rent based on Census ACS data is $823. This means that Section 8 vouchers can cover a higher percentage of the rental costs compared to the actual market rates, making it attractive for landlords who are looking to receive a subsidy above the local average rent.
Given these economic factors, ZIP code 49425 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's characteristics—such as a stable population and modest home values—make it a low-risk investment with guaranteed rental income through the Section 8 program. The difference between the FMR and the market rent provides a buffer that ensures landlords can maintain their properties without significant financial strain.
On the other hand, hands-on value-add buyers might find opportunities to improve properties and potentially increase their rental income over time. With the FMR exceeding the current market rent, there is room for value-add strategies that could enhance property value and rental rates, provided the improvements align with the local demand and affordability.
In summary, ZIP code 49425 offers a balanced environment for Section 8 investments, combining a stable and modest living area with favorable rent economics that cater to both passive and active investors.
Data Sources: FMR data from HUD (2027). 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.