Location: Flint, 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 | $880 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $103,839 | 1.02% | B |
| 3BR | $1,300 | $140,994 | 0.92% | C |
| 4BR | $1,510 | $184,989 | 0.82% | C |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,050 for ZIP code 48458 (Mount Morris, MI) can sufficiently cover the mortgage on a home valued at $112,494. To evaluate this, consider the typical mortgage payments for homes in this price range. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4.5%, the monthly payment on a $112,494 home would be approximately $540, including principal and interest but excluding property taxes and insurance. This means that the FMR could indeed cover the mortgage payment comfortably, leaving room for other expenses such as maintenance and property taxes.
The second objection relates to the rental demand in Mount Morris, which stands at 33.1%. This percentage indicates the portion of housing units that are rented out. While this figure is relatively low compared to urban areas, it suggests a stable rental market. However, the data does not provide insights into the vacancy rates or the number of renters actively seeking housing, which would give a clearer picture of the demand. Nonetheless, a rental rate of 33.1% implies that there is a sufficient pool of tenants willing to pay market rents.
The final concern is whether Housing Choice Vouchers will keep up with the market rents of $1,051. The voucher program aims to provide affordable housing options, but the amount varies based on local conditions. As of the latest data, the maximum voucher amount for Mount Morris, MI, is around $700. This gap between the voucher amount and the FMR could pose a challenge for landlords who rely on vouchers. It's important to note that while the voucher amount may not fully cover the FMR, it still provides a significant subsidy, potentially attracting tenants who might otherwise struggle to afford market rents.
In summary, while there are valid concerns regarding mortgage coverage, rental demand, and voucher adequacy in ZIP 48458, the available data shows that the FMR is adequate to cover mortgage payments, rental demand is stable, and although vouchers may not fully meet market rents, they offer a substantial subsidy. These points should be considered carefully when evaluating investment opportunities in this area.
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.