Location: Muskegon-Norton Shores, 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)
A landlord considering ZIP 49440 for a Section 8 investment must evaluate several factors to make an informed decision. The first step is to assess whether the Fair Market Rent (FMR) can cover the debt service on a property valued at $335,862. The FMR for ZIP 49440 in fiscal year 2024 is $910.
If the answer to the first question is yes: This means that the FMR of $910 is sufficient to meet the debt service requirements. Proceed to the second question.
If the answer is no: The FMR of $910 does not clear the debt service on a property costing $335,862. Therefore, purchasing in ZIP 49440 would not be advisable under these conditions.
The second question is whether the market rent of $915 (from Census ACS data) is above, at, or below the FMR. In this case, the market rent is slightly above the FMR.
If market rent is above FMR: This indicates a positive margin where landlords can potentially earn more than the FMR. Move to the third question.
If market rent is at or below FMR: There is little to no additional income beyond what the FMR provides. This makes the investment less attractive unless other factors compensate for the lower rent.
The final question concerns demand. ZIP 49440 has 74.6% of its population as renters, which is a strong indicator of demand. However, the Days on Market (DOM) data is not available, making it difficult to gauge how quickly properties are rented out.
If there is enough demand: With 74.6% of the population renting, the demand for rental properties is high. This suggests that properties will likely be occupied consistently, ensuring steady income.
If there is insufficient demand: Without a clear measure of DOM, this scenario cannot be definitively assessed. However, the high percentage of renters implies that demand is present, though the speed of occupancy remains unknown.
In summary, if the FMR of $910 clears the debt service on a $335,862 property, and market rent of $915 exceeds the FMR, then the high renter population of 74.6% supports the investment. The lack of DOM data introduces some uncertainty but does not necessarily negate the attractiveness of ZIP 49440 for Section 8 investments given the other favorable metrics.
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.