Location: Midland, 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 | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $180,234 | 0.75% | D |
| 3BR | $1,700 | $236,777 | 0.72% | D |
| 4BR | $2,020 | $364,533 | 0.55% | F |
| 5BR | $2,343 | $487,512 | 0.48% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP 48642 (Midland, MI) for Section 8 must evaluate several factors to make an informed decision.
Does FMR $1170 (zip FY 2024) clear debt service on a $247,782 property?
Yes: The Fair Market Rent (FMR) for ZIP 48642 is $1170 per month for the fiscal year 2024. This amount must be sufficient to cover the debt service of a property valued at $247,782. Assuming a typical mortgage rate and a 20-year loan term, the monthly payment would likely fall below the $1170 threshold, indicating that FMR can indeed cover debt service.
No: If the monthly debt service exceeds $1170, then the landlord will not be able to rely solely on Section 8 payments to cover expenses. Additional income sources or a lower purchase price would be necessary.
It Depends: The outcome hinges on the specific terms of the mortgage, including interest rates and down payment size. For instance, with a higher down payment, the monthly debt service could be reduced to a level where it is covered by the FMR.
Is market rent $1,600 (ZORI) above, at, or below FMR?
Above: The Zillow Rent Index (ZORI) for Midland, MI, indicates an average market rent of $1,600 per month. This is significantly higher than the FMR of $1170. Landlords who wish to maximize rental income should consider the potential to rent out properties at market rates rather than relying on Section 8.
At: If the market rent were equal to the FMR, it would indicate that there is little to no premium over the subsidized rent. This scenario is unlikely given the $1,600 ZORI, but if it were true, landlords would have to carefully balance their expectations of rental income.
Below: Since the ZORI is above the FMR, this branch does not apply to ZIP 48642.
Are 25.3% renters + 24-day DOM enough demand?
Yes: With 25.3% of residents being renters and a Days on Market (DOM) of 24 days, the demand for rental properties appears to be robust. A DOM of 24 days suggests that properties are rented relatively quickly, indicating strong tenant interest.
No: If the DOM were significantly longer, or if the percentage of renters were much lower, the demand for rental properties might not be sufficient to support a Section 8 investment. However, based on the current data, this is not the case.
It Depends: The adequacy of demand also depends on other factors such as the number of Section 8 vouchers available and the landlord's ability to attract tenants. While the current data points to a healthy rental market, these additional considerations must also be factored into the decision-making process.
In conclusion, for a landlord asking whether they should buy in ZIP 48642 for Section 8 purposes, the analysis shows that the FMR can cover debt service on a property priced at $247,782 under certain conditions, the market rent is above the FMR, and the current demand is sufficient. These factors suggest a positive outlook for Section 8 investments in this area.
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.