Location: Lenawee County, 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 | $1,230 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $287,568 | 0.52% | F |
| 3BR | $1,790 | $423,297 | 0.42% | F |
| 4BR | $1,980 | $596,027 | 0.33% | F |
| 5BR | $2,297 | $701,914 | 0.33% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 48176, which includes Saline, MI, within Washtenaw County, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1250 for fiscal year 2024. This figure is specifically tailored for this ZIP code, reflecting the unique rental dynamics of the area.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), stand at $1498 for a similar two-bedroom unit. This indicates that landlords can expect the SAFMR to be lower than the actual market rates, creating a potential gap between what a voucher pays and the market rent.
A Section 8 voucher works by covering the difference between what a tenant can afford and the rent of the apartment. Typically, the tenant's contribution is 30% of their adjusted income. If we assume an average adjusted income of $1,800 per month, the tenant would contribute approximately $540 towards rent ($1,800 * 0.30).
The voucher itself covers the remaining amount up to the SAFMR. In this case, it would pay $710 to meet the $1250 SAFMR limit ($1250 - $540). However, landlords must also account for utility allowances when calculating total reimbursement. Utility allowances vary but are generally around $200-$300 per month. Assuming a $250 utility allowance, the total reimbursement a landlord receives for a two-bedroom apartment would be $960 ($710 + $250).
This means there is a significant gap between the market rent and the reimbursement from the voucher. Specifically, for a two-bedroom unit renting at $1498, the landlord would receive $960 from the voucher program, leaving a shortfall of $538 per month. This gap must be managed by landlords, either through accepting a lower net rent or by finding ways to reduce operational costs.
In summary, while the SAFMR provides a benchmark for rental assistance in ZIP 48176, the actual reimbursement falls short of the local market rent. Landlords should prepare for a reimbursement of $960 for a two-bedroom apartment, resulting in a surplus of market demand over subsidized rates.
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.