Location: Sanilac County, MI | Metro: Sanilac County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 48419 is centered around the significant gap between the Fair Market Rent (FMR) set at $1,090 for the fiscal year 2026 and the current market rent of $846 as reported by the Census Bureau's American Community Survey. This discrepancy amounts to a difference of $244, or approximately 28%, indicating that landlords can potentially benefit from participating in the Section 8 program.
Voucher tenants represent a yield play for landlords in this area due to the higher FMR compared to the actual market rent. By renting to Section 8 tenants, landlords can charge closer to the FMR rate, thereby increasing their rental income above what the open market currently offers. This is particularly advantageous given the local context where only 11.4% of residents are renters, suggesting a smaller pool of potential tenants who might drive up market rents.
The median home value in ZIP 48419 stands at $198,331, while the median household income is $59,485. These figures highlight the affordability challenges faced by many residents, making government-subsidized housing options like Section 8 vouchers increasingly attractive. Landlords who accept these vouchers can expect a stable and reliable source of income, as the government covers the difference between the actual rent and the tenant's contribution, which is typically 30% of their income.
However, it is important to note that renting to Section 8 tenants below open-market rates could result in lower profit margins for landlords. Despite this, the security of guaranteed payments from the government, combined with the opportunity to command rents closer to the FMR, makes it a strategic choice for those looking to maximize returns in a relatively low-rent environment.
Data Sources: FMR data from HUD (2027). 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.