Location: Saginaw, MI | Metro: Saginaw, 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 | $870 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $179,756 | 0.7% | D |
| 3BR | $1,610 | $214,365 | 0.75% | D |
| 4BR | $1,640 | $305,463 | 0.54% | F |
| 5BR | $1,902 | $394,686 | 0.48% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 48603 in Saginaw, Michigan, for fiscal year 2024 is set at $1,100. This figure represents the maximum amount that a landlord can receive under the Section 8 program, which is not necessarily the rent you will charge your tenants. The FMR is used to determine the payment standard for vouchers, meaning that if the market rent on your property exceeds this amount, the tenant would need to pay the difference.
To provide context, the local Zillow Observed Rent Index (ZORI) for the same area stands at $1,137. This indicates that the actual rents being charged in the market are slightly higher than the FMR, but the gap is manageable. Given the 33.1% renter share in the area, there is a significant demand for rental properties, particularly those that are affordable and meet the criteria for Section 8 tenancy.
The median home value in ZIP 48603 is approximately $224,303. This figure reflects the typical cost to acquire a property in the area, which is important when evaluating the potential return on investment for a Section 8 rental. While the initial acquisition cost might seem high, the stability of rental income and the demand for affordable housing make it a viable option for landlords and small-portfolio investors.
Before committing to a Section 8 rental property, it's crucial to verify that your property meets all the necessary inspection requirements. Section 8 requires that homes be up to code and pass a thorough inspection before they can be leased to a tenant with a voucher. This ensures that the living conditions are safe and habitable, aligning with the program's goals of providing decent and affordable housing.
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.