Section 8 Fair Market Rent (FMR) for ZIP 48662 - 2027

Location: Gratiot County, MI | Metro: Midland, MI MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$820
1 Bedroom	$840
2 Bedrooms	$1,080
3 Bedrooms	$1,370
4 Bedrooms	$1,520
5 Bedrooms	$1,763
6 Bedrooms	$1,975
7 Bedrooms	$2,133
8 Bedrooms	$2,240

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,185

Median Household Income

$70,321

Housing Units

560

Renter Percentage

11.2%

Occupancy Rate

90.5%

Renter Occupied

The ZIP code 48662 presents several challenges for potential Section 8 landlords. Firstly, the tenant turnover rate is critical to assess, but unfortunately, the market rent data is currently unavailable. This lack of information makes it difficult to gauge the financial viability compared to the Fair Market Rent (FMR) of $1160 for FY 2024. Secondly, vacancy exposure is another concern due to the unavailability of the days on market (DOM) figure, which would help understand how quickly properties can be rented out. Additionally, the typical home value in this area is $190,304, while the median income is $70,321. This significant gap between home values and incomes suggests a higher likelihood of deferred maintenance, as homeowners may struggle to afford necessary repairs and upgrades.

Tenant Turnover: The inability to determine market rent rates poses a risk, as it's unclear whether the $1160 FMR is competitive enough to attract and retain tenants.
Vacancy Exposure: Without knowing the average days on market, there is uncertainty regarding how long properties might remain vacant, increasing the financial burden on landlords.
Deferred Maintenance: Given the disparity between home values and median income, landlords should anticipate higher costs associated with maintaining rental properties in good condition.

However, these risks must be weighed against the fact that 11.2% of the population are renters. High renter density often correlates with a greater demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of rental income. The presence of Section 8 tenants can offer landlords a predictable and reliable source of income, even if it comes with its own set of administrative complexities.

Verdict: Moderate risk for a first-time Section 8 landlord.

Data Sources: FMR data from HUD (2027). 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.