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 | $850 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $160,992 | 0.76% | D |
| 3BR | $1,490 | $213,147 | 0.7% | D |
| 4BR | $2,010 | $257,602 | 0.78% | D |
| 5BR | $2,332 | $279,691 | 0.83% | C |
U.S. Census Bureau data (2024)
In ZIP 48161, which encompasses Monroe, MI, in Monroe County, the Section 8 housing program operates under specific economic parameters that are crucial for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1090. This figure represents the maximum amount that the federal government will reimburse landlords who participate in the Section 8 Housing Choice Voucher program.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1050. This indicates that the SAFMR is slightly above the average rental price in the area, providing landlords with a competitive advantage when it comes to attracting tenants who qualify for the voucher program.
A Section 8 voucher works by covering the difference between the tenant's contribution and the total rent. The tenant's portion is typically 30% of their adjusted income. For example, if a tenant's monthly income is $1,500, their contribution would be $450 (30% of $1,500). If the rent for a two-bedroom apartment is $1090, the voucher would cover the remaining $640. However, landlords should note that the actual reimbursement received can vary based on the tenant's income level.
In addition to the base rent, the voucher also includes an allowance for utilities. The exact amount varies but is generally around $300-$400 per month for a two-bedroom unit. This utility allowance is intended to help cover costs such as electricity, gas, water, and sewage. It is important to remember that these allowances are separate from the rent reimbursement and are calculated based on the tenant's utility bills.
To illustrate, let's assume a tenant's rent contribution is $450 and the utility allowance is $350. The total reimbursement from the voucher would be $1000 ($450 tenant contribution + $350 utility allowance + $200 base reimbursement). In this scenario, the landlord would receive a total of $1000, leaving a gap of $90 between the reimbursement and the SAFMR of $1090. This gap must be covered by the landlord.
In ZIP 48161, given the SAFMR of $1090 and the local market rent of $1050, landlords participating in the Section 8 program can expect a slight surplus when renting a two-bedroom apartment. This surplus is due to the SAFMR being higher than the local market rent, thus ensuring that landlords receive a fair reimbursement even if they charge the average market rate.
However, it is essential for landlords to keep in mind that the reimbursement is capped at the SAFMR, meaning they cannot charge more than $1090 for a two-bedroom apartment without the tenant paying the additional amount out of pocket. This can affect the overall financial planning and expectations for properties in this ZIP code.
Landlords should also be aware that the SAFMR is set specifically for this ZIP code, reflecting local conditions and costs. Therefore, the reimbursement rates are tailored to ensure affordability and fairness within the ZIP 48161 area.
In summary, landlords in ZIP 48161 can expect a reimbursement close to the local market rent of $1050, with a small surplus compared to the SAFMR of $1090. This makes the Section 8 program a viable option for maintaining occupancy while receiving a stable, government-backed rental income.
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.