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 | $1,430 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $2,650 |
| 5 Bedrooms | $3,074 |
| 6 Bedrooms | $3,443 |
| 7 Bedrooms | $3,718 |
| 8 Bedrooms | $3,904 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $299,682 | 0.6% | F |
| 3BR | $2,320 | $415,027 | 0.56% | F |
| 4BR | $2,650 | $603,915 | 0.44% | F |
| 5BR | $3,074 | $877,678 | 0.35% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 49506, located in East Grand Rapids, Michigan, reveals a balance between yield and stability that positions it as a moderate cash flow opportunity with relatively stable conditions.
On the yield axis, the Fair Market Rent (FMR) for the fiscal year 2024 stands at $1,510, while the market rent is higher at $1,838. This suggests a decent rental income potential, especially when considering the average home value of $424,339. The gap between FMR and market rent indicates an above-average yield, making it attractive for investors looking to generate higher rental returns compared to the area's benchmark rates.
Moving to the stability axis, the ZIP code shows a lower percentage of renters at 24.9%, which is indicative of a primarily owner-occupied neighborhood. This characteristic tends to reduce the volatility typically associated with high-renter populations. Additionally, the days on market (DOM) statistic of 8 days reflects a quick turnover rate for properties, suggesting strong demand and a healthy rental market. However, the median household income of $118,131 provides a counterbalance, ensuring that tenants have the financial capacity to meet their rental obligations, thereby enhancing the overall stability of the rental income.
While the yield is above average due to the higher market rent, the stability is also notable given the quick property turnover and the financial strength of the local residents. Therefore, ZIP 49506 does not fit the profile of a high-yield/low-stability flip-style market but rather leans towards a steady-cashflow zone with some upside potential in terms of rental pricing.
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.