Location: Saginaw, 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 | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $110,413 | 0.91% | C |
| 3BR | $1,380 | $143,697 | 0.96% | C |
| 4BR | $1,490 | $146,323 | 1.02% | B |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord investing in ZIP code 48708 in Bay City, MI, include significant tenant turnover. The market rent stands at $932, while the Fair Market Rent (FMR) for FY 2024 is set at $910. This discrepancy suggests that tenants might seek higher-paying market rents, leading to frequent turnover.
Vacancy exposure is another concern, with an average Days on Market (DOM) of 24 days. This indicates a relatively quick turnover rate, but it also implies that properties can remain vacant long enough to affect cash flow negatively.
Deferred maintenance is a notable risk due to the typical home value of $134,182 and the median household income of $50,518. The income levels suggest that residents might struggle to afford substantial home improvements, increasing the likelihood of deferred maintenance issues. Landlords must be prepared to address these problems promptly to maintain property standards and comply with housing regulations.
However, these risks are offset by the high concentration of renters in the area. With 29.9% of the population being renters, there is likely to be a robust demand for rental units, particularly those accepting Section 8 vouchers. High renter density often correlates with greater interest in subsidized housing options, which can stabilize occupancy rates.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.