Location: Jackson, MI | Metro: Ann Arbor, MI MSA
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 | $1,640 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,030 | $308,929 | 0.66% | D |
| 3BR | $2,440 | $405,337 | 0.6% | D |
| 4BR | $2,670 | $510,804 | 0.52% | F |
| 5BR | $3,097 | $603,978 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 48118, located in Chelsea, MI, falls within the Jackson, MI MSA metro area. To understand its position relative to other ZIP codes in the Jackson, MI MSA, we can analyze its Fair Market Rent (FMR) of $1660 for fiscal year 2024, market rent of $1,636, median home value of $411,893, and a renter share of 19.8%. These figures provide insight into the economic dynamics of the area.
Typical ZIP codes within the Jackson, MI MSA exhibit a range of characteristics. However, based on the specific figures provided for ZIP 48118, it appears to be a mid-tier neighborhood within its metro. The FMR and market rent figures are relatively modest, aligning with the expectations for a middle-income area. This suggests that the rental market is neither excessively expensive nor particularly affordable compared to the broader Jackson MSA.
The median home value of $411,893 is also indicative of a mid-tier status. While this figure represents the typical price point for homeownership in the area, it does not suggest an exceptionally high-end market. Home values in premium sub-markets within the same metro would likely exceed this amount significantly.
A noteworthy aspect is the renter share of 19.8%, which is slightly above the national average. This higher-than-average proportion of renters, combined with below-metro home values, could signal a potential sweet spot for Section 8 investors. It implies that there is a significant demand for rental properties, and the lower home values might offer opportunities for cost-effective property acquisition and management.
In summary, ZIP 48118 in Chelsea, MI, stands as a mid-tier neighborhood within the Jackson, MI MSA. Its rental and home values reflect a balanced market, while the higher renter share suggests a robust demand for rental housing, making it a potentially attractive location for Section 8 investments.
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.