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 | $910 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $206,623 | 0.63% | D |
| 3BR | $1,600 | $275,852 | 0.58% | F |
| 4BR | $2,160 | $365,237 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 48145, located in La Salle, MI, presents a unique opportunity for landlords and small-portfolio investors due to the significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 48145 as of fiscal year 2024 is set at $1340, while the Census American Community Survey (ACS) indicates that the average market rent is $1032. This represents a gap of $308, or approximately 29.8%, between the two figures.
Given that the FMR exceeds the market rent, it becomes evident that voucher tenants can be a lucrative investment for landlords. The higher FMR ensures a steady income stream that is often more reliable than collecting rent directly from non-subsidized tenants. Landlords can capitalize on this situation by renting properties at the market rate but receiving the higher FMR through the Section 8 program, thus creating a yield play scenario.
In La Salle, MI, where only 16.3% of residents are renters, the median home value stands at $270,469, and the median household income is $83,204. These factors suggest that the rental market is relatively small compared to homeownership. However, the Section 8 program can provide a stable tenant base, which is crucial for maintaining consistent cash flow in a low-renter population area.
Despite the benefits, there are also considerations for landlords. Accepting Section 8 tenants means adhering to federal guidelines and potentially undergoing regular inspections to ensure compliance with housing quality standards. Additionally, the administrative burden of managing Section 8 vouchers includes timely rent certifications and dealing with the Housing Authority. These factors can influence the overall profitability and management strategy of rental properties.
For small-portfolio investors, the decision to participate in the Section 8 program should be weighed against the local economic conditions and the specific needs of their investment strategy. While the gap between FMR and market rent provides an attractive yield, the broader context of La Salle's real estate market must also be considered.
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.