Location: Holland-Grand Haven, 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 | $1,160 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $451,652 | 0.37% | F |
| 3BR | $2,090 | $479,787 | 0.44% | F |
| 4BR | $2,480 | $579,703 | 0.43% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP 49460, located in West Olive, MI, include significant challenges related to tenant turnover, vacancy exposure, and deferred maintenance. The market rent for the area is currently unknown, but the Fair Market Rent (FMR) for FY 2024 is set at $1360. This discrepancy can lead to higher tenant turnover if market rents exceed the FMR, causing tenants to seek more affordable options.
Vacancy exposure is another concern, as the days on market (DOM) for rental properties in this area is also unspecified. A longer DOM can increase the risk of prolonged vacancies, which directly impacts cash flow and profitability. Additionally, the typical home value in ZIP 49460 stands at $490,141, while the median household income is $101,966. These figures suggest that many residents may struggle to afford regular maintenance costs, leading to potential deferred maintenance issues that could affect property values and safety standards.
However, these risks must be weighed against the fact that 6.0% of the population are renters. High renter density often correlates with higher demand for housing vouchers, such as those provided through the Section 8 program. This demand can help stabilize occupancy rates and ensure a steady stream of tenants who qualify for assistance, mitigating some of the financial uncertainties associated with vacancy periods.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 49460 is moderate.
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.