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 | $830 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $185,771 | 0.65% | D |
| 3BR | $1,450 | $220,331 | 0.66% | D |
U.S. Census Bureau data (2024)
The median income in ZIP 48157, which encompasses Luna Pier, MI, stands at $61,641. Given the market rate for rent at $395 per month based on Census ACS data, it becomes evident that households in this area face significant challenges in affording housing without assistance. This figure represents a substantial portion of their monthly income, making it difficult for residents to sustain other essential expenses.
In contrast, the Fair Market Rent (FMR) standard set by the voucher program for fiscal year 2024 is $970 per month. This amount far exceeds the local market rate, indicating that voucher recipients could easily find suitable housing within ZIP 48157 without straining their finances. The disparity between the market rate and the FMR suggests a clear opportunity for landlords who accept vouchers.
With only 16.8% of the population being renters and a total population of 1,244, the competition among landlords for tenants is relatively low. However, the affordability gap means that many potential renters would struggle to pay the market rate without financial aid. This scenario creates a unique situation where landlords could benefit from accepting vouchers to attract tenants who might otherwise be unable to afford housing in this area.
The takeaway for landlords considering voucher versus cash-pay strategies is straightforward: accepting vouchers can provide a steady stream of reliable tenants. Despite the lower market rate of $395, the higher voucher payment of $970 ensures better financial stability and reduces the risk of vacancy. Landlords should weigh the benefits of higher guaranteed payments against the administrative complexities that may come with participating in the voucher program.
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.