Location: Bay City, MI | Metro: Bay City, 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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $178,353 | 0.59% | F |
| 3BR | $1,420 | $245,120 | 0.58% | F |
| 4BR | $1,530 | $315,497 | 0.48% | F |
U.S. Census Bureau data (2024)
The renter's landscape in ZIP 48611, Auburn, MI, reveals a tight squeeze between income levels and housing costs. The median household income stands at $87,963, which might seem substantial. However, when compared to the market rate rental cost of $933 per month, the financial burden becomes apparent. A household must dedicate approximately 13% of their annual income to cover these market rate rents, which is significant but manageable.
Interestingly, the Federal Market Rent (FMR) for ZIP 48611 in fiscal year 2024 is set at $940 per month, nearly on par with the market rate. This means that for landlords accepting Housing Choice Vouchers, there is little to no difference in monthly rent payments compared to renting to cash-paying tenants. The voucher payment standard closely aligns with the actual market rate, making it a viable option for landlords looking to stabilize their income streams without sacrificing profitability.
Auburn has a relatively low rental market penetration with only 16.8% of its 6,093 residents being renters. This translates to roughly 1,013 households. Given the limited number of renters and the affordability gap, competition among landlords for both voucher and cash-paying tenants is likely to be intense. Landlords must consider the benefits of voucher acceptance, such as guaranteed rent payments and reduced vacancy rates, against the potential challenges of working with the voucher program.
The takeaway for landlords considering voucher vs. cash-pay strategies is clear: the financial disparity between voucher and market rate rents is minimal in Auburn, MI. Accepting vouchers can provide a steady stream of income and access to a broader tenant pool, including those who might otherwise struggle to find affordable housing. In a competitive market with a narrow margin between income and rent, voucher acceptance offers a strategic advantage in securing long-term tenancy and maintaining property occupancy.
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.