Location: Monroe, MI | Metro: Monroe, 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 | $920 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,620 | $325,883 | 0.5% | F |
| 4BR | $2,190 | $374,094 | 0.59% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP 48140, located in Ida, Michigan, reveals a significant gap between the Fair Market Rent (FMR) and the market rent. The FMR for ZIP 48140 is set at $970 for fiscal year 2024, while the market rent, according to the Census ACS, stands at $979. This creates a gap of $9, or approximately 0.92%, between the two figures.
In this scenario where the FMR is slightly lower than the market rent, landlords and small-portfolio investors must consider the implications of accepting Section 8 voucher tenants. While voucher tenants provide a guaranteed source of income, the rent received is typically below the open-market rate. This difference can translate into a lower yield on investment properties, impacting overall profitability.
To anchor this analysis, we must consider the broader context of ZIP 48140. Only 6.1% of residents are renters, indicating a primarily owner-occupied market. The median home value is $316,140, and the median income is $109,257. Given these figures, it becomes evident that the rental market is relatively small compared to homeownership. Therefore, landlords might face challenges in attracting and retaining non-voucher tenants willing to pay the higher market rent.
However, accepting Section 8 tenants can still be a strategic move, especially if the goal is to stabilize occupancy and ensure a steady cash flow. It is important to note that the slight disparity between FMR and market rent may not significantly affect yields when considering the stability and predictability that comes with government-backed rental assistance programs.
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.