Our Michigan DSCR loan page has the statewide rules and the short term rental limits in Grand Rapids. For why a Michigan rental's tax bill jumps after a sale, read our companion post on Michigan property tax uncapping. Here we stay in Kent County and price five places against one rent.

Every figure was checked on November 10, 2026 against HUD User's FY2027 Fair Market Rents, Census Bureau QuickFacts, the Michigan Department of Treasury's 2025 total millage list and the City of Grand Rapids.

The FY2027 Rent Jump

HUD's Grand Rapids area is Kent County alone, and its rents rose at every bedroom size for FY2027.

Some HUD areas stretch across five or six counties. This one does not: the Grand Rapids Wyoming HUD Metro FMR Area consists of Kent County only. Ottawa County falls in a separate Holland Grand Haven area, where the FY2027 three bedroom figure is $1,947, so a house a few miles west of Walker screens against a lower number.

A $133 bump on the three bedroom is about 6.7%. For a rental that sat exactly at 1.00 last year on the HUD figure, that alone lifts the ratio to about 1.07 with no change to the payment.

One rent for all of Kent County. Median values run from $225,200 in Wyoming to $295,200 in Walker.

City and Suburbs Side by Side

Wyoming is the lowest priced of the five, and Grand Rapids itself has the most renters.

Notice the gap between the Census median gross rent, which averages every lease including old ones and small units, and HUD's three bedroom benchmark. The ACS figure in Grandville is $1,143; HUD's three bedroom figure is $2,113. That does not mean a Grandville three bedroom rents for $1,143. It means you should pull comps for the exact street and bedroom count before trusting either number.

School District Millage

Inside Kent County a rental's tax rate swings by more than 13 mills depending on the school district, and it does not follow city lines.

The 2025 Treasury list shows Grand Rapids city with the Grand Rapids city school district at 51.1249 non homestead mills, while the slice of Grand Rapids in Forest Hills Public Schools carries 54.3132. Walker inside Kenowa Hills carries 45.5054 non homestead mills, the lowest of the places we checked, but the part of Walker in Comstock Park is 51.7310. Wyoming runs from 56.4320 in the Grand Rapids city school district to 58.6915 in Wyoming Public Schools.

The yearly tax assumes the taxable value resets to half of the median value the year after you buy, which is how an uncapped Michigan bill works when price equals true cash value. Your assessor's number for the parcel will differ.

Run the DSCR on your deal

The DSCR Math

Wyoming and Grand Rapids clear 1.00 at their medians, and the three higher priced suburbs land between 0.95 and 0.98.

Here is the setup. Buy at the city's median value with 25% down. Use Freddie Mac's 30 year fixed average of 7.18% from November 5, 2026 as a reference rate only; it is a conventional loan average, not a DSCR rate and not a rate we are quoting. Tax comes from the district table. Insurance is $1,800 a year, an example number, not market data and not a quote. Rent is HUD's $2,113 three bedroom benchmark.

The last column is the useful one. Walker's low millage gives it the most room, about $281,400 before a three bedroom at the HUD rent stops paying for itself, while Wyoming, Kentwood and Grandville top out near $261,000 to $263,000. So in this metro the cheapest town is not automatically the best buy, and the town with the highest median is not automatically the worst.

Two Bed, Three Bed or Four

Two bedrooms struggle at these prices, and four bedrooms carry the deal.

At the $1,630 two bedroom figure, Grand Rapids lands near 0.85 and Wyoming near 0.88 at their medians. At the $2,417 four bedroom figure, Grand Rapids rises to about 1.26, Wyoming to 1.31 and Walker to 1.09. Our ratio floor is 0.50, so a two bedroom can still be financed, but if you want the property to cover its own payment on paper, the extra bedroom is worth $304 a month of HUD rent here.

City Rental Rules

Inside Grand Rapids a rental needs a Certificate of Compliance before a tenant moves in, and older houses carry a lead paint layer on top.

The City of Grand Rapids inspects rental property occupied by people other than the owner and issues a Certificate of Compliance when it meets the housing code; the city says you need that certificate before someone can live there. Chapter 12 Lead-Based Paint was approved on June 13, 2023 and added screening for potential lead hazards in pre 1978 rentals to the certification process. The city's page says the lead dust screening requirements are postponed until further notice, and the city offers free EPA lead safe renovation training to Grand Rapids owners. Build the inspection timeline into your closing plan, since a house cannot earn rent until it passes.

Loan Terms That Fit

For Kent County prices, interest only and the reserve rules do most of the work.

• Interest only comes as ten years on a 40 year term or as a 30 year term with interest only, at up to 70% LTV on a purchase and 65% on a cash out. It moves Kentwood from 0.98 to 1.10 in our table.
• Reserves: none are required when the loan is under $1 million and the LTV is under 75%. There is no asset sourcing, no large deposit sourcing and no seasoning.
• Gifts: a 100% gift can pay the down payment, closing costs and reserves.
• Refinance later: cash out goes up to 80% LTV with no ownership seasoning.
• New investors do not need to own a home or show a VOR. Ratios go as low as 0.50 and loans go up to $5 million.

Our interest only DSCR loan guide shows when the lower payment helps, and the DSCR reserve requirements post covers the 75% LTV line. Our loan programs page lists the rest.

Where It Goes Wrong

It goes wrong when an investor picks the suburb and forgets the district.

My Grand Rapids Checklist

1. Look up the school district on the parcel record, then use the non homestead millage for it.
2. Price the uncapped bill at half of your price times the mills, divided by 1,000.
3. Pull three bedroom comps for the street, not the city.
4. Inside Grand Rapids, plan for the rental inspection and, on a pre 1978 house, lead safe work.
5. Get a landlord insurance quote before you write the offer.
6. Send us the address. We run the DSCR the way the lender will, with the down payment and the payment.

Sources

All sources checked November 10, 2026. Data changes, so confirm before you rely on it.

1. HUD User, FY2027 Fair Market Rents, Kent County, MI (Grand Rapids Wyoming HUD Metro FMR Area). Studio $1,306, 1 bed $1,365, 2 bed $1,630, 3 bed $2,113, 4 bed $2,417 (FY2026 $1,232, $1,278, $1,531, $1,980, $2,189); area consists of Kent County only
2. HUD User, FY2027 Fair Market Rents, Ottawa County, MI (Holland Grand Haven HUD Metro FMR Area). 3 bed $1,947 (FY2026 $1,930)
3. U.S. Census Bureau QuickFacts, Grand Rapids, Wyoming, Kentwood, Walker and Grandville cities and Kent County, Michigan. Median value of owner occupied housing units, owner occupied rate and median gross rent, ACS 2020 to 2024; population estimates July 1, 2025 (V2025)
4. Michigan Department of Treasury, 2025 Total Property Tax Rates in Michigan (complete list), Kent County. 2025 non homestead totals: Grand Rapids city with Grand Rapids city schools 51.1249, Godwin Heights 52.3949, Forest Hills 54.3132; Wyoming with Grand Rapids city schools 56.4320, Wyoming Public 58.6915; Kentwood with Kentwood Public 57.2228, Kelloggsville 59.9936; Walker with Kenowa Hills 45.5054, Grandville Public 47.2356, Comstock Park 51.7310; Grandville with Grandville Public 58.4496
5. Michigan Legislature, MCL 211.27a. Assessment at 50% of true cash value; taxable value resets to state equalized valuation the year after a transfer of ownership
6. City of Grand Rapids, Rental Certification Program. Rentals occupied by people other than the owner are inspected; a Certificate of Compliance is needed before someone can live there
7. City of Grand Rapids, Chapter 12: Lead-Based Paint. Approved June 13, 2023; screening for lead hazards in pre 1978 rentals as part of rental certification; lead dust screening requirements postponed until further notice; free EPA RRP training
8. Freddie Mac Primary Mortgage Market Survey. 30 year fixed average 7.18% as of November 5, 2026 (reference only)

Frequently asked questions