Location: Shiawassee County, MI | Metro: Saginaw, 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 | $710 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,310 | $229,468 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 48649 is not predominantly a renter-heavy area; only 11.1% of the population are renters. With a total population of 1,699, this translates to approximately 188 renters. Given that the median household income is $72,609, the typical market rent of $799 represents about 13.2% of the local median income. This is calculated by taking the monthly rent ($799) and dividing it by the annual median income ($72,609), then multiplying by 12 to get the percentage of annual income spent on rent.
In comparison, the Fair Market Rent (FMR) for ZIP 48649, set at $1,040 for fiscal year 2024, is significantly higher than the market rent. The FMR is a benchmark used by HUD to determine the maximum rental assistance payment for Section 8 vouchers. At $1,040, it represents roughly 17.7% of the median household income. This suggests that the FMR is set above the actual market rent, which could be beneficial for landlords participating in the Section 8 program as it provides a buffer against market fluctuations.
Landlords in ZIP 48649 can expect tenants who are likely to rely heavily on Section 8 vouchers due to the disparity between the FMR and the market rent. These tenants will have their rent subsidized up to the FMR level, making it possible for them to afford housing in this area despite the relatively high cost compared to their income levels. It's important for landlords to understand that while the voucher system guarantees timely rent payments, they must also be prepared to manage properties that cater to lower-income households, ensuring compliance with HUD standards and maintaining property quality.
To summarize, ZIP 48649 is not a renter-heavy area, but the voucher demand is present due to the income-to-rent ratio. Landlords should anticipate a tenant pool that primarily consists of individuals utilizing Section 8 vouchers, with an emphasis on maintaining properties at a standard that meets both market and HUD requirements.
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.