Location: Saginaw, 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 | $720 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $151,655 | 0.68% | D |
| 3BR | $1,300 | $214,477 | 0.61% | D |
| 4BR | $1,440 | $260,585 | 0.55% | F |
U.S. Census Bureau data (2024)
Investors considering the ZIP code 48457, located in Montrose, Michigan, often raise several key concerns regarding the feasibility of investing in rental properties through the Section 8 program. Here, we address those concerns head-on with the available data.
The first objection typically revolves around whether the Fair Market Rent (FMR) of $1060 for the fiscal year 2024 will be sufficient to cover the mortgage on a median-priced home valued at $206,877. The short answer is that it depends on the terms of the mortgage. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4%, the monthly payment on such a home would be approximately $1015. This means that the FMR does indeed cover the mortgage payment, leaving a small buffer for maintenance and other costs.
A second concern is the level of renter demand, which stands at 16.4%. While this percentage might seem low, it's important to consider the context. In ZIP 48457, the rental vacancy rate is relatively low, indicating that there is a steady demand for rental housing. Moreover, the percentage of renters in the area suggests a stable tenant pool. However, the data does not provide a comprehensive picture of the competition among landlords or the specific needs of the local population, so further research might be necessary to fully understand the market dynamics.
The final objection centers on whether voucher amounts will keep up with market rents, currently set at $859. The FMR of $1060 is higher than the market rent, which implies that voucher holders can afford to pay the market rate. Nevertheless, the long-term sustainability of this trend cannot be guaranteed solely based on the current data. Voucher amounts can fluctuate due to changes in government funding and policies, so ongoing monitoring of these factors is essential.
To summarize, the data shows that the FMR covers the mortgage payment for a median-priced home, there is a reasonable demand for rental housing, and voucher holders can currently afford market rents. However, investors must remain vigilant about potential changes in the housing market and government policies that could impact these figures.
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.