Location: Oceana County, MI | Metro: Muskegon-Norton Shores, MI MSA
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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,120 | $242,558 | 0.46% | F |
| 3BR | $1,350 | $290,076 | 0.47% | F |
| 4BR | $1,480 | $345,457 | 0.43% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 49437, which encompasses Montague, Michigan, stands at $82,805. This figure places affordability of housing into stark relief when compared to the market rate rental cost of $822 per month, according to Census ACS data. The disparity between income and rental costs indicates that the average household can indeed manage the market rate, but only with a portion of their monthly budget dedicated to housing.
To further contextualize the situation, consider the Federal Market Rent (FMR) standard of $920 per month for the fiscal year 2024. This benchmark is notably higher than the current market rate, suggesting that voucher payments could cover a larger share of the rent in this area. However, it also implies that landlords accepting vouchers might find themselves receiving slightly less than they could charge on the open market.
The ZIP code has a relatively low percentage of renters at 12.3%, indicating that the majority of residents are homeowners. Given a total population of 6,895, this means that there are approximately 845 renter households. With such a limited pool of potential tenants, competition among landlords can be fierce, especially for those looking to attract voucher holders who represent a guaranteed, albeit possibly lower, income stream.
The affordability gap in Montague, Michigan, highlights the importance of strategic decision-making for landlords. Accepting Section 8 vouchers can ensure steady, government-backed rental income, albeit at a rate below the FMR. On the other hand, relying solely on market-rate rents allows landlords to potentially command higher rates, but they must navigate the challenges posed by a smaller tenant base and the possibility of vacancy.
Takeaway: Landlords in ZIP 49437 should weigh the benefits of accepting vouchers against the desire to maximize rental income. Given the competition and the size of the rental market, diversifying their tenant mix to include both voucher recipients and cash-paying tenants could be a prudent approach. This strategy helps mitigate the risk of vacancies while still allowing landlords to benefit from the stability provided by Section 8 payments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.