Location: Shiawassee County, MI | Metro: Livingston County, MI HUD Metro FMR Area
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 | $1,210 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,470 |
| 5 Bedrooms | $2,865 |
| 6 Bedrooms | $3,209 |
| 7 Bedrooms | $3,466 |
| 8 Bedrooms | $3,639 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $266,986 | 0.61% | D |
| 3BR | $2,170 | $308,908 | 0.7% | D |
| 4BR | $2,470 | $366,702 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 48418 in Byron, Michigan, centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 48418 in fiscal year 2024 is set at $1,140, while the Census ACS reports an average market rent of $1,464. This creates a gap of $324, which represents a 28.4% difference between the two figures.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the potential costs associated with housing voucher tenants. While the government pays a portion of the rent based on the FMR, the remaining balance must be made up by the landlord, often leading to financial strain. In Byron, MI, where only 6.1% of residents are renters, landlords may face challenges in finding enough voucher holders to fill units without subsidizing the shortfall themselves.
Moreover, the median home value in Byron, MI is $289,939, and the median household income is $74,547. These figures suggest that homeownership is more prevalent and financially feasible compared to renting, especially at rates higher than the FMR. Landlords must consider these economic realities when evaluating the potential returns and risks of accepting Section 8 vouchers in their properties.
In summary, the gap between the FMR and market rent in ZIP 48418 is significant, indicating that landlords who accept Section 8 vouchers will need to carefully manage their finances to account for the difference. This makes it imperative for landlords to understand the local rental market dynamics and the broader economic context of Byron, MI, before committing to the 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.