Section 8 Fair Market Rent (FMR) for ZIP 48439 - 2027

Investment Score for ZIP 48439

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$850
1 Bedroom	$1,010
2 Bedrooms	$1,220
3 Bedrooms	$1,500
4 Bedrooms	$1,740
5 Bedrooms	$2,018
6 Bedrooms	$2,260
7 Bedrooms	$2,441
8 Bedrooms	$2,563

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,220	$239,014	0.51%	F
3BR	$1,500	$272,703	0.55%	F
4BR	$1,740	$361,417	0.48%	F
5BR	$2,018	$453,139	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48439 (Grand Blanc, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 48439, as per the 2026 data, are set at $760 for 0BR units, $900 for 1BR units, $1080 for 2BR units, $1330 for 3BR units, and $1570 for 4BR units. These FMRs represent the maximum rent that a household receiving a Section 8 Housing Choice Voucher can pay. However, it is important to note that these figures are significantly lower than the actual market rents. For instance, the Zillow median price for a 2BR unit in Grand Blanc is $234,512, which translates to a monthly mortgage payment far exceeding the FMR. One key constraint for voucher holders is the limited availability of units that accept vouchers and fall within the FMR range. Given the high price-to-FMR ratio of 18.1x, it is likely that many landlords may not find it financially viable to accept Section 8 vouchers, especially if they can rent their properties at higher rates to non-voucher tenants. This could lead to a situation where voucher holders have difficulty finding suitable housing within the FMR limits. #### Affordability & Renter Profile In ZIP code 48439, the population is approximately 51,900, with 25.8% of residents being renters. The occupancy rate stands at 96.1%, indicating a robust rental market with relatively few vacant units. The median household income is $88,490, which means that the majority of residents can afford market-rate rents. However, for those relying on Section 8 vouchers, the affordability challenge is significant. For example, the FMR for a 2BR unit is $1080, which represents about 14.6% of the median household income. This suggests that while the FMR is designed to be affordable for low-income households, it may still be challenging for some residents to find units that both meet their needs and fall within the FMR limit. The high occupancy rate also implies that there is little room for additional units to come onto the market, potentially exacerbating competition for available rental properties. #### Investor Angle From an investor perspective, the ZIP code 48439 presents a mixed picture. While the FMRs provide a baseline for what voucher holders can afford, the actual market rents are much higher. For instance, a 2BR unit priced at $234,512 would translate to a monthly mortgage payment of around $1000-$1200, depending on interest rates and loan terms. This is already close to the FMR limit for a 2BR unit, leaving little margin for profit unless the property can be rented at higher rates to non-voucher tenants. Given the high price-to-FMR ratio of 18.1x, it is unlikely that an investor would find the ZIP code cash-flow positive solely by renting to voucher holders. The primary challenge is the discrepancy between the FMR and the actual market value of properties, which makes it difficult to achieve positive cash flow when relying solely on FMR-based rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as 0BR or 1BR apartments, as these have lower FMRs ($760 and $900 respectively). This could help in achieving better cash flow, although the demand for these units might be lower given the family-oriented nature of the area. 2. **Diversify Tenant Base**: To ensure financial viability, investors should aim to diversify their tenant base. While some units can be designated for Section 8 voucher holders, others should be marketed to higher-paying tenants who can afford market rates. This strategy can help balance out the lower rents received from voucher holders. 3. **Consider Location-Specific Factors**: Given the high occupancy rate, investors should carefully evaluate the location-specific factors that influence rental demand. Units located near schools, public transportation, and employment centers may command higher rents and have a better chance of attracting non-voucher tenants. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 48439 is to **skip** this market. The high price-to-FMR ratio and limited availability of units that accept vouchers make it challenging to achieve positive cash flow. Additionally, the strong rental market and high occupancy rate suggest that there is little incentive for landlords to accept Section 8 vouchers when they can easily find higher-paying tenants. Investors looking to focus on Section 8 properties would be better served exploring areas with lower price-to-FMR ratios and more significant rental vacancy rates.

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.