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 | $1,090 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,570 | $217,663 | 0.72% | D |
| 3BR | $1,920 | $284,243 | 0.68% | D |
| 4BR | $2,590 | $360,168 | 0.72% | D |
| 5BR | $3,004 | $432,701 | 0.69% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 48182, located in Temperance, MI, within Monroe County, revolve around the $1220 SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment set for fiscal year 2024. This figure is specifically tailored for this ZIP code, meaning it reflects the rental conditions unique to this area.
In comparison, the local market rent for a two-bedroom apartment in ZIP 48182 is $1,328, according to the Census American Community Survey (ACS). This indicates that landlords participating in the Section 8 program will receive slightly less than the market rate for their units. However, the SAFMR is designed to ensure that the rent is reasonable and reflective of the local rental market, which can be advantageous for both tenants and landlords.
A landlord should understand that the total reimbursement from a Section 8 voucher is composed of two parts: the tenant's portion and the utility allowance. The tenant typically pays 30% of their adjusted income towards rent, while the government covers the difference up to the SAFMR limit. For instance, if a tenant's adjusted income is $1,600 per month, they would pay $480 towards rent, leaving the government to cover the remaining amount up to the SAFMR of $1220.
The utility allowance varies but is generally set at a fixed amount per bedroom. For a two-bedroom apartment, the utility allowance might be around $200-$300, depending on the specifics of the voucher and the local utility costs. Therefore, if we take the higher end of the utility allowance at $300, the total reimbursement a landlord could expect would be the sum of the tenant's payment ($480) and the utility allowance ($300), which equals $780. The government then makes up the rest to reach the SAFMR of $1220, thus providing an additional $440 directly to the landlord.
This results in a reimbursement gap where the landlord receives $1220 instead of the market rent of $1,328, creating a shortfall of $108 per month. However, this gap is relatively small and manageable compared to the benefits of having a reliable and stable source of income, backed by the government, ensuring timely rent payments and reducing vacancy risks.
To summarize, landlords in ZIP 48182 can expect a total reimbursement of $1220 for a two-bedroom unit under the Section 8 program, which includes the tenant's contribution and the utility allowance. Given the local market rent of $1,328, there is a $108 monthly shortfall. Despite this gap, the program remains a viable option for landlords seeking to maintain occupancy and manage their properties effectively.
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.