Location: Muskegon-Norton Shores, MI | Metro: Holland-Grand Haven, MI HUD Metro FMR Area
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 | $1,110 |
| 1 Bedroom | $1,380 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,380 | $234,512 | 0.59% | F |
| 2BR | $1,590 | $323,277 | 0.49% | F |
| 3BR | $1,990 | $406,218 | 0.49% | F |
| 4BR | $2,350 | $536,700 | 0.44% | F |
| 5BR | $2,726 | $734,636 | 0.37% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,210 for ZIP 49456 (Ferrysburg, MI) in fiscal year 2024 will sufficiently cover the mortgage on a home priced at $410,210. To address this, consider that the typical monthly mortgage payment for a median-priced home in Ferrysburg, assuming a 30-year fixed-rate mortgage at an average interest rate, would be around $1,600. Thus, the FMR does not fully cover the mortgage but leaves a shortfall of approximately $390 per month. This suggests that landlords or investors would need to either seek higher rents or consider other income streams.
The second objection is whether there is sufficient renter demand given that only 17.7% of households in ZIP 49456 are renters. This percentage indicates a relatively low rental market penetration. However, it's important to note that the number of renters can still support a modest investment portfolio. With a total population of approximately 3,000, 17.7% translates to roughly 531 rental units. While this might seem limited, the demand is steady, especially if you focus on properties that cater to specific needs such as proximity to employment centers or amenities.
The final concern is whether Housing Choice Vouchers will keep pace with market rents, which currently stand at $1,656. The voucher program aims to cover up to 40% of the area's median gross rent, which means it could potentially cover up to $662 based on the current market rent. However, the actual voucher amount varies and is determined by household size and income. It's crucial to monitor local housing authority announcements and adjust your expectations accordingly. The data does not provide a direct comparison between voucher amounts and market rents, so caution is advised when relying solely on vouchers to fill vacancies.
In summary, while ZIP 49456 presents some challenges, particularly with the gap between FMR and mortgage payments, and the limited rental market share, the steady demand and potential for voucher assistance make it a viable consideration for landlords and small-portfolio investors. Careful planning and market research are essential to navigate these factors effectively.
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.