Location: Oscoda County, MI | Metro: Ogemaw County, MI
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 | $720 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $214,330 | 0.57% | F |
U.S. Census Bureau data (2024)
In ZIP 48654, the Section 8 program operates under specific economic guidelines that are crucial for landlords and small-portfolio investors to understand. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $970. This figure represents the maximum amount the government will pay for a rental unit in this category, based on the local housing market conditions.
Local market rent, as reported by the Census ACS, averages $732 for a similar two-bedroom unit. This difference between the SAFMR and the actual market rent is a key consideration for landlords participating in the Section 8 program.
The economics of Section 8 vouchers work as follows: The voucher holder pays 30% of their adjusted monthly income towards rent. The remaining 70% is covered by the government, up to the SAFMR limit. Additionally, there are utility allowances that vary depending on the size of the unit and location. For a two-bedroom apartment, the utility allowance is typically included in the reimbursement calculations but can be negotiated separately.
To illustrate, if a tenant's portion of the rent is $200, the government would cover the rest of the rent up to the SAFMR limit of $970. Therefore, the total reimbursement a landlord could receive for a two-bedroom unit would be $970, assuming the tenant’s contribution plus the government subsidy equals the SAFMR. If the market rent is lower, say $732, then the landlord would still receive the full market rent, with the government covering the difference between the tenant's contribution and the market rent.
Given these figures, landlords in ZIP 48654 participating in the Section 8 program for a two-bedroom unit can expect a reimbursement that closely aligns with the market rent of $732. However, since the SAFMR is higher at $970, there is a potential for a surplus if the landlord sets the rent closer to the SAFMR level. Conversely, if the market rent is indeed around $732, landlords might find themselves with a smaller reimbursement gap compared to areas where market rents exceed the SAFMR.
In summary, for a two-bedroom apartment in ZIP 48654, the typical reimbursement scenario under Section 8 would result in a surplus for landlords who set their rents at the market rate of $732. Landlords should carefully consider these economic factors when deciding to participate in the Section 8 program.
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.