Location: Grand Rapids-Wyoming, MI | Metro: Grand Rapids-Wyoming, 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 | $1,300 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,360 | $231,483 | 0.59% | F |
| 2BR | $1,620 | $252,064 | 0.64% | D |
| 3BR | $2,100 | $301,553 | 0.7% | D |
| 4BR | $2,400 | $314,767 | 0.76% | D |
| 5BR | $2,784 | $324,215 | 0.86% | C |
U.S. Census Bureau data (2024)
The rent math in ZIP 49504, part of the Grand Rapids-Wyoming, MI HUD Metro FMR Area, does not align favorably for landlords. The Fair Market Rent (FMR) set at $1310 for the fiscal year 2024 is notably below the market rent indicated by ZORI, which stands at $1,595. This discrepancy means that landlords may struggle to cover their costs if they adhere strictly to the FMR guidelines.
Acquisition in this area remains relatively affordable, with a median home value of $284,443. The average days on market (DOM) of 9 days and a low price-cut share of 0.2% suggest that homes are selling quickly without significant discounts. These factors indicate a stable housing market where properties can be acquired at fair prices.
Tenant demand is strong in ZIP 49504, with a total population of 40,036 and 43.1% of residents being renters. This high percentage of renters points to a robust market for rental properties, providing landlords with a consistent pool of potential tenants.
In summary, while the rent math poses a challenge due to the gap between FMR and market rents, the affordability of acquisitions and the presence of a large tenant base make ZIP 49504 a viable investment location for landlords and small-portfolio investors. However, careful consideration must be given to the pricing strategy to ensure profitability without violating rental assistance guidelines.
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.