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 | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $161,664 | 0.62% | D |
| 3BR | $1,380 | $242,619 | 0.57% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 48631, located in Bay County, Michigan, can be quite favorable for landlords when understood correctly. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $910. This SAFMR is the maximum amount that the housing authority will pay towards a tenant's rent under the Section 8 program.
Comparatively, the local market rent for a two-bedroom unit in ZIP 48631 is currently around $820, according to recent Census ACS (American Community Survey) data. This indicates that the SAFMR is higher than the local market rent, which can be advantageous for landlords participating in the program.
When a tenant receives a Section 8 voucher, they are responsible for paying a portion of the rent themselves, typically 30% of their adjusted income. Additionally, there are utility allowances that vary based on the size of the unit and other factors. For a two-bedroom apartment, the utility allowance can range but generally does not exceed $200 per month. Therefore, the total reimbursement a landlord might receive is the sum of the tenant's contribution and the utility allowance, capped at the SAFMR of $910.
To illustrate, if a tenant's portion of the rent is $150 and the utility allowance is $180, the landlord would receive a total of $830 from the housing authority and the tenant combined. However, since the SAFMR is $910, the landlord could potentially charge up to this amount without exceeding the maximum reimbursement limit. In practice, the landlord should ensure that the rent charged does not exceed the SAFMR to avoid financial loss.
In ZIP 48631, where the local market rent is lower than the SAFMR, landlords participating in the Section 8 program can expect a slight surplus. Given the market rent of $820 and an SAFMR of $910, the typical surplus for a two-bedroom rental would be around $90 per month, assuming the landlord charges close to the SAFMR and the tenant's contribution plus utility allowance equals the market rent.
This surplus allows landlords to maintain a competitive edge in the local rental market while still benefiting from the stability provided by the Section 8 program. It also helps cover any unexpected expenses or maintenance costs associated with the property.
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.