Section 8 Fair Market Rent (FMR) for ZIP 49426 - 2027

Investment Score for ZIP 49426

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	$1,160
1 Bedroom	$1,460
2 Bedrooms	$1,660
3 Bedrooms	$2,090
4 Bedrooms	$2,480
5 Bedrooms	$2,877
6 Bedrooms	$3,222
7 Bedrooms	$3,480
8 Bedrooms	$3,654

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
1BR	$1,460	$330,705	0.44%	F
2BR	$1,660	$315,078	0.53%	F
3BR	$2,090	$397,428	0.53%	F
4BR	$2,480	$468,464	0.53%	F
5BR	$2,877	$546,137	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 49426 (Hudsonville, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 49426 in Hudsonville, MI, indicate that the rent for a two-bedroom apartment is $1590 per month. This amount represents 17.0% of the median household income of $112,234, which is relatively affordable for the average resident. However, the FMR does not necessarily reflect the actual rents being charged in the market. The Zillow median price for a two-bedroom home is $309,287, suggesting that the price-to-FMR ratio is 16.2x. This high ratio indicates that actual rents are significantly higher than the FMR, which could pose challenges for Section 8 voucher holders. For instance, if the actual rent for a two-bedroom unit is $25,800 annually (based on the price-to-FMR ratio), it would be nearly 16 times the FMR of $1590. This means that voucher holders would likely struggle to find units within their budget, especially since landlords are not required to accept vouchers if they exceed the FMR. #### Affordability & Renter Profile Given the relatively low renter percentage of 11.1%, the rental market in ZIP 49426 appears to be tight. With a high occupancy rate of 97.2%, there is little room for new renters to enter the market without displacing existing residents. The median household income of $112,234 suggests that the area is affluent, and the typical renter profile would likely include individuals or families who can afford higher-than-average rents. The high price-to-FMR ratio also supports the notion that the market is tight and that rents are above what might be considered affordable based on the FMR guidelines. #### Investor Angle From an investor perspective, the ZIP code 49426 offers a mixed picture. While the high median household income and low renter percentage suggest strong demand for rental properties, the high price-to-FMR ratio indicates that the actual rents charged are well above the FMR. This means that properties rented at FMR levels would likely not generate positive cash flow due to the high acquisition costs. For example, a two-bedroom property priced at $309,287 would need to generate annual rent of approximately $25,800 to break even, which is far above the FMR of $1590 per month. Therefore, the investment grade for this ZIP code is relatively low for Section 8-focused investors, as the financial returns would be limited by the strict rent limits imposed by the program. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1390, which is still a significant portion of the median income but may offer better opportunities for cash flow compared to larger units. Investors could aim to acquire properties where the actual rent is closer to the FMR, thereby maximizing the potential for Section 8 tenants. 2. **Consider Alternative Rental Markets**: Due to the tight rental market and high acquisition costs, investors might want to look at neighboring ZIP codes with similar demographics but lower price-to-FMR ratios. This could provide better opportunities for cash flow and a more favorable investment environment for Section 8-focused investors. #### Bottom Line Based on the data provided, the recommendation for Section 8-focused investors in ZIP code 49426 is to **Skip**. The high price-to-FMR ratio and tight rental market make it challenging to achieve positive cash flow when renting at FMR levels. Investors should explore other ZIP codes with more favorable conditions for Section 8 rentals. If they must invest in this area, they should focus on smaller units like one-bedroom apartments, where the FMR is $1390, to potentially improve their chances of attracting Section 8 tenants while maintaining a reasonable cash flow.

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.