Location: Allegan County, MI | Metro: Allegan County, MI
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 | $1,070 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,730 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $142,295 | 0.99% | C |
| 3BR | $1,730 | $199,118 | 0.87% | C |
U.S. Census Bureau data (2024)
The rent math in ZIP 49450, Pullman, MI, does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,280 for the metro area in fiscal year 2026 is higher than the current market rent of $1,146 as reported by the Census ACS. This discrepancy suggests that landlords may struggle to justify higher rents to tenants based on current market conditions.
Acquisition of properties in this area is relatively affordable, with a median home value of $178,270. However, the lack of available data on days on market (DOM) and the percentage of homes sold with price cuts indicates that there might be some uncertainty regarding the ease of selling homes at full asking price. Landlords and small-portfolio investors should be cautious about overpaying for properties without clear indicators of market liquidity.
Tenant demand in ZIP 49450 is moderate. With a total population of 2,998, approximately 17.2% are renters. This translates to roughly 515 potential rental households, which could provide a stable tenant base but also limits the size of the rental market.
In summary, while the median home value makes property acquisition relatively affordable, the unfavorable rent math and moderate tenant demand suggest that this area may not be optimal for maximizing rental income. Investors should carefully consider these factors before committing to the market in ZIP 49450.
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.