Location: Tuscola County, MI | Metro: Huron 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 | $710 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,340 | $181,185 | 0.74% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 48726, as determined by the U.S. Department of Housing and Urban Development (HUD), is set at $970 for the fiscal year 2026. This figure represents the maximum amount that a landlord can receive through the Section 8 program, which is a federal housing assistance program designed to help low-income families afford decent housing. It's important to note that the $970 is not the rent you will charge your tenants; it's the ceiling on what the government will pay towards the rent.
In comparison, the average rent in ZIP 48726, based on recent Census American Community Survey (ACS) data, is $787. This means that the Section 8 payment standard is higher than the typical market rate, providing a potential buffer against financial risk for landlords.
The 14.9% share of renters in this area indicates a moderate demand for rental properties. While not exceptionally high, it does suggest that there is a steady pool of potential tenants who might benefit from the Section 8 program. Given the local median home value of $177,129, it also implies that acquiring a property in this ZIP code could be a significant investment, but the Section 8 program could help mitigate some of the risks associated with owning a rental property.
To proceed with a Section 8 rental, one key verification step is crucial: ensure that the property meets all HUD's Housing Quality Standards (HQS). These standards cover a wide range of issues including safety, cleanliness, and structural integrity. A property that fails to meet these standards will not qualify for the Section 8 program, so it's essential to conduct a thorough inspection and possibly make necessary improvements before applying.
Once the property meets HQS, the next step is to apply for approval under the Section 8 program. If approved, the landlord can expect to receive a portion of the tenant's rent directly from the government, up to the $970 limit. This arrangement provides a reliable source of income, even if the tenant's portion of the rent is lower than the local average.
In conclusion, the Section 8 program offers a structured approach to managing rental income in ZIP 48726. With a payment standard of $970 and an average local rent of $787, landlords can potentially earn slightly above the typical market rate while ensuring that their tenants have stable housing. The 14.9% renter share suggests a consistent demand, and the median home value of $177,129 reflects the significant investment involved in acquiring a property. However, the most critical action is to confirm that the property meets HUD's HQS, which is a prerequisite for participation in the 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.