Location: Sanilac County, MI | Metro: Sanilac County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 48466 provides a detailed look at the financial viability of rental properties in this area. Based on the Fair Market Rent (FMR) for a two-bedroom apartment set at $970 per month for fiscal year 2026, the annualized income would be $11,640. Given the median home value of $181,680, the implied gross yield from the FMR scenario is approximately 6.4%. This calculation is straightforward and gives a clear indication of the potential income landlords can expect if they participate in the Section 8 program.
In contrast, using the market rent figure of $717 per month as reported by the Census Bureau's American Community Survey, the annualized income drops to $8,604. With the same median home value of $181,680, the gross yield from the market rent scenario is about 4.7%. This lower yield reflects the realities of the local rental market outside of the Section 8 program.
The gross-yield comparison between the two scenarios is significant, with the Section 8 program offering a higher yield by nearly 1.7 percentage points. However, the decision to participate in Section 8 should also consider other factors such as tenant stability and government regulations.
Given the renter density of 15.6%, it is evident that the majority of homeowners in ZIP 48466 do not rely solely on rental income. This suggests that landlords might have more flexibility in choosing tenants who fit their investment criteria, whether that be through the Section 8 program or the broader rental market. The N/A-day DOM (Days on Market) indicates that there isn't enough data to determine how quickly rental units are typically leased, which could affect the speed at which landlords can capitalize on the higher yields offered by the Section 8 program.
In summary, while the Section 8 program offers a higher gross yield at 6.4% compared to the market rent scenario at 4.7%, the actual choice depends on the landlord's investment strategy and tolerance for government oversight. The higher yield is more realistic for those willing to navigate the intricacies of the Section 8 program, whereas the lower yield aligns with the broader rental market conditions.
Data Sources: FMR data from HUD (2027). 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.