Location: Isabella County, MI | Metro: Midland, 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 | $820 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $151,961 | 0.71% | D |
| 3BR | $1,370 | $197,718 | 0.69% | D |
| 4BR | $1,520 | $226,791 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 48618, which encompasses Coleman, MI, revolves around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $910, while the Census American Community Survey (ACS) reports the market rent at $778. This creates a gap of $132, or approximately 14.3%.
In this scenario, where the FMR exceeds the market rent, landlords and small-portfolio investors can leverage the higher FMR to increase their rental yields. Voucher tenants provide a guaranteed income stream at the higher FMR rate, thus offering a financial advantage over open-market tenants who might pay less. The median home value in Coleman, MI is $198,175, and the median income is $61,968, indicating that the local economy supports a modest but stable rental market.
With only 16.3% of residents classified as renters, the demand for rental properties is relatively low compared to areas with a higher percentage of renters. However, the Section 8 program can help fill this demand, ensuring steady occupancy and predictable cash flow. Landlords should be aware that while the FMR provides a higher rent benchmark, the overall rental market in Coleman, MI is still influenced by the broader economic conditions, including the median income levels.
To summarize, the $132 difference between the FMR and the market rent presents an opportunity for landlords to improve their investment returns by accepting voucher tenants. Despite the lower proportion of renters in Coleman, MI, the Section 8 program can be a reliable source of income, aligning well with the local economic realities.
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.