Location: Monroe, 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 | $1,410 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $252,082 | 0.69% | D |
| 3BR | $2,100 | $290,409 | 0.72% | D |
| 4BR | $2,310 | $417,039 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 48191 (Willis, MI) reveals a stark contrast between the federally determined Fair Market Rent (FMR) and the actual market rental rates. For a two-bedroom property, the annualized FMR set by the government for FY 2024 is $1830. Given the median home value in the area is $297,946, this translates into an implied gross yield of approximately 0.61%. This figure is calculated by dividing the annual rent ($1830) by the median home value ($297,946).
In contrast, the Census ACS reports the average market rent for a two-bedroom unit in ZIP 48191 as $1,387 annually. Using the same median home value, this yields an implied gross yield of about 0.46%. The difference between these two gross yields highlights the potential financial disparity landlords might face when participating in the Section 8 program versus renting at market rates.
Given the 9.1% renter density in Willis, MI, it's important to consider the practicality of these figures. The lower market rent scenario is more reflective of the local housing market conditions. However, the higher FMR set by the government can offer some stability and predictability to landlords, especially considering that the days on market (DOM) data is not available, making it difficult to gauge how quickly properties are rented out.
The gross yield comparison clearly shows that the Section 8 FMR provides a higher return compared to the market rent. Landlords should weigh this higher yield against the administrative requirements and potential risks associated with the Section 8 program. While the 0.61% gross yield under FMR is more attractive, the 0.46% from market rent reflects the reality of the local rental market, suggesting that participation in Section 8 could be financially beneficial despite the lower renter density.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.