Location: Saginaw, 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 | $860 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $121,872 | 1.01% | B |
| 3BR | $1,580 | $181,668 | 0.87% | C |
| 4BR | $1,620 | $216,554 | 0.75% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 48722 in Bridgeport, MI, reveals distinct rental income scenarios based on the Fair Market Rent (FMR) and market rent figures. For a two-bedroom property, the annualized FMR stands at $930 per month, while the market rent is $1,158 per month. These figures are to be considered against the backdrop of a median home value of $172,177.
The implied gross yield when using the FMR of $930 per month is approximately 6.2%. This is calculated by multiplying $930 by 12 months to get an annual rental income of $11,160, and then dividing that figure by the median home value of $172,177. The calculation is as follows:
In contrast, the implied gross yield based on the market rent of $1,158 per month is significantly higher, around 8.1%. This is derived by calculating the annual rental income as $13,896 ($1,158 multiplied by 12), and then dividing it by the median home value of $172,177. The calculation is:
Given the 3.6% renter density in Bridgeport, MI, the FMR scenario might be more reflective of the actual rental income potential. However, the lack of Days on Market (DOM) data makes it difficult to predict how quickly a property could be leased under the FMR versus the market rent. Despite this, the significant gap between the FMR and market rent suggests that securing tenants at the FMR rate could be challenging without substantial concessions or improvements to attract low-income renters.
Investors should consider these gross yields as starting points for their analysis. While the 8.1% yield appears more attractive, the lower 6.2% yield based on FMR might be more realistic due to the limited demand from Section 8 participants in the area. Nonetheless, the decision should factor in the local housing market dynamics and the specific requirements of Section 8 tenancy.
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.