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 | $910 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,600 | $314,023 | 0.51% | F |
| 4BR | $1,860 | $389,695 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 48436 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as determined by HUD for fiscal year 2024, stands at $1100. In contrast, the Census ACS data indicates that the average market rent is $1,267. This creates a gap of $167, which represents approximately a 15% 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 financial implications when accepting housing vouchers. The cost of renting to voucher tenants below open-market rates means that landlords will receive less income per unit compared to what they could earn by renting to non-voucher tenants at market rates. However, the stability of rental income provided by government subsidies can be an attractive feature for some investors seeking consistent cash flow.
To contextualize this analysis, consider the broader economic landscape of ZIP 48436. Renters constitute 8.2% of the population, indicating a relatively low demand for rental properties. The median home value in the area is $286,822, and the median household income is $94,487. These figures suggest that while homeownership is prevalent, the income levels are sufficient to support both market rents and voucher programs.
Despite the lower FMR, landlords can still achieve a positive yield by optimizing their property management practices and maintaining high occupancy rates. Additionally, the demographic makeup and economic conditions of the area might influence the desirability of Section 8 tenants, who often have stable and reliable payment histories due to the direct deposit system used by the program.
In summary, the gap between FMR and market rent in ZIP 48436 presents a trade-off for landlords. While they might receive slightly less income per unit when renting to voucher tenants, the overall economic health of the area supports the viability of both types of rental arrangements. Landlords must weigh these factors carefully when deciding whether to participate in the Section 8 program.
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.