Location: Shiawassee County, MI | Metro: Flint, 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 | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $144,727 | 0.7% | D |
| 3BR | $1,370 | $192,487 | 0.71% | D |
| 4BR | $1,540 | $219,352 | 0.7% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering Section 8 properties in ZIP 48429 (Durand, MI) might raise several valid concerns. Let's address them with the available data.
The Fair Market Rent (FMR) for a one-bedroom apartment in ZIP 48429 for fiscal year 2024 is set at $910. This figure needs to be compared against the potential mortgage costs. Assuming a conventional 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $192,436 home would be approximately $1,040. Given this, the FMR of $910 does not fully cover the mortgage payment, leaving a shortfall of about $130 per month. However, it's important to note that the FMR is typically higher for larger units, which could help offset this cost.
The rental vacancy rate in ZIP 48429 stands at 16.5%. While this percentage is higher than the national average, it suggests a moderate level of demand. A higher vacancy rate can indicate a slower rental market, but it also means that landlords have some flexibility in setting their rental terms. The key here is to understand the local market dynamics and adjust expectations accordingly. For instance, offering competitive amenities or pricing strategies can help attract tenants.
The voucher payment standard for ZIP 48429 is $855 for a one-bedroom unit. This is slightly below the FMR of $910, indicating that while vouchers will cover most of the market rent, they won't fully meet it. Landlords participating in the Section 8 program should expect to absorb the difference between the voucher amount and the FMR. It's worth noting that voucher holders often represent a stable tenant pool, which can mitigate financial risks associated with higher turnover rates.
Investors must weigh these factors carefully. While the FMR does not entirely cover mortgage payments, and the vacancy rate suggests a somewhat competitive market, the stability of voucher recipients can provide a consistent income stream. Additionally, local economic conditions and the specific characteristics of the property in question will play significant roles in determining overall profitability.
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.