Section 8 Fair Market Rent (FMR) for ZIP 48635 - 2027

Location: Ogemaw County, MI | Metro: Ogemaw County, MI

Investment Score for ZIP 48635

D
Monthly Rent (2BR)
$1,050
Median Price (2BR)
$173,776
1% Rule
0.6%
Annual Yield
7.25%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$790
1 Bedroom$880
2 Bedrooms$1,050
3 Bedrooms$1,310
4 Bedrooms$1,490
5 Bedrooms$1,728
6 Bedrooms$1,935
7 Bedrooms$2,090
8 Bedrooms$2,195

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,050 $173,776 0.6% D
3BR $1,310 $220,049 0.6% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
1,546
Median Household Income
$57,500
Housing Units
1,742
Renter Percentage
4.7%
Occupancy Rate
43.2%
Renter Occupied
35

The Fair Market Rent (FMR) for ZIP 48635, Lupton, Michigan, is set at $1,040 for the fiscal year 2026. This figure represents the payment standard for Section 8 housing vouchers in the area. It's important to note that this is not your rent; it's the maximum amount that the government will pay on behalf of eligible tenants. If you're considering your first Section 8 rental property in this ZIP code, understanding this distinction is crucial.

To put this into perspective, the average rent in ZIP 48635 is currently listed at $945, according to recent Census Bureau data. This suggests that the FMR is slightly higher than the market rate, which can be advantageous for landlords participating in the program.

The renter share in this area is 4.7%, indicating a moderate demand for rental properties. While this percentage might seem low, it translates to a significant number of potential tenants in need of affordable housing. The acquisition cost for a property in this ZIP code is around $178,208, based on recent real estate trends. This figure can help you estimate the financial commitment required to purchase a property suitable for Section 8 tenants.

Before proceeding with a Section 8 rental in ZIP 48635, ensure that your property meets all the necessary inspection criteria. The Housing Quality Standards (HQS) inspection is mandatory, and passing it is a requirement for participating in the program. This step will confirm that your property is safe and habitable for tenants, ensuring compliance with federal guidelines.

In summary, the FMR of $1,040 provides a benchmark for the maximum government contribution towards rent in ZIP 48635. With an average market rent of $945 and a 4.7% renter share, there is a reasonable demand for rental properties in this area. The typical acquisition cost of $178,208 gives you a baseline for investment. Your next step should be to verify that your property passes the HQS inspection, guaranteeing it meets the standards expected for Section 8 participation.

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.