Location: Tuscola County, MI | Metro: Flint, MI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 48420, which encompasses Vienna, MI, and parts of Genesee County, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $910 for fiscal year 2024. This figure is specifically tailored for this ZIP code, reflecting the localized housing market conditions.
Contrastingly, the local market rent for a two-bedroom unit in ZIP 48420 averages $829 according to the Census American Community Survey (ACS). This difference between the SAFMR and the actual market rent is significant for landlords and small-portfolio investors.
A Section 8 voucher payment consists of two primary components: the tenant's portion and the utility allowance. The tenant typically pays 30% of their income toward rent. For simplicity, let's assume the tenant's portion is $273, which is 30% of a household income of $910 per month. The remaining balance is covered by the Housing Authority, up to the SAFMR limit.
In ZIP 48420, the voucher reimbursement to landlords for a two-bedroom unit would be calculated as follows:
Note that the Housing Authority's reimbursement does not include utility costs. Landlords receive a separate utility allowance, which can vary based on the number of bedrooms and other factors but is generally capped. In this case, let's say the utility allowance is $200 per month.
This means the total monthly income a landlord could expect from a two-bedroom rental property in ZIP 48420, when rented under a Section 8 voucher, would be $837 ($637 from the Housing Authority plus $200 for utilities).
Given that the local market rent is $829, a landlord participating in the Section 8 program for a two-bedroom unit in ZIP 48420 would see a surplus of $8 per month over the typical market rent. This surplus makes Section 8 an attractive option for landlords who might otherwise struggle to find tenants willing to pay the full market rate.
To summarize, the economics of Section 8 in ZIP 48420 provide a steady income of $837 per month for a two-bedroom unit, slightly above the average local market rent of $829. This results in a small surplus, making it a viable and stable investment opportunity for landlords and small-portfolio investors.
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.