Section 8 Fair Market Rent (FMR) for ZIP 49453 - 2027

Location: Allegan County, MI | Metro: Allegan County, MI

Investment Score for ZIP 49453

Monthly Rent (2BR)

$1,150

Median Price (2BR)

$557,625

1% Rule

0.21%

Annual Yield

2.47%

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	$870
1 Bedroom	$870
2 Bedrooms	$1,150
3 Bedrooms	$1,430
4 Bedrooms	$1,590
5 Bedrooms	$1,844
6 Bedrooms	$2,065
7 Bedrooms	$2,230
8 Bedrooms	$2,342

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$870	$315,792	0.28%	F
2BR	$1,150	$557,625	0.21%	F
3BR	$1,430	$633,667	0.23%	F
4BR	$1,590	$813,557	0.2%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,908

Median Household Income

$110,139

Housing Units

2,191

Renter Percentage

8.3%

Occupancy Rate

59.5%

Renter Occupied

108

Saugatuck, located in ZIP code 49453, is a charming lakeside community in Michigan known for its picturesque scenery and affluent residents. This analysis provides insights into the rental market dynamics, focusing on key metrics that are crucial for landlords and small-portfolio investors.

The Fair Market Rent (FMR) for a one-bedroom apartment in the Saugatuck area for fiscal year 2026 is set at $1,000.
The actual market rent for a similar unit, based on Census American Community Survey (ACS) data, is currently at $858. This indicates a slight gap between the FMR and the market rate, suggesting potential for modest rent increases.
The median home value in Saugatuck is $607,680, reflecting the high-end nature of the housing market in this area.
Renters make up only 8.3% of the population, which is relatively low compared to national averages, implying a strong preference for homeownership among residents.
The median household income in Saugatuck is $110,139, indicating a robust economic base that supports higher rents and property values.
The Days on Market (DOM) data is currently N/A, which could suggest that either the data is not available or the market is moving quickly, with properties selling or renting out before detailed tracking can be completed.

Investors looking to enter the Saugatuck rental market should anticipate a niche market with limited opportunities due to the low renter share. However, the high median income and fair market rent levels provide a solid foundation for generating steady returns. The current market rent is below the FMR, offering a window for price adjustments. Despite the challenges, the affluent nature of the community ensures a stable demand for high-quality rentals, making it a worthwhile consideration for those who can navigate the competitive landscape.

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.