Location: Ogemaw County, MI | Metro: Iosco 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 | $960 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $177,380 | 0.64% | D |
| 3BR | $1,530 | $242,633 | 0.63% | D |
| 4BR | $1,820 | $360,665 | 0.5% | F |
U.S. Census Bureau data (2024)
In ZIP 48739, which includes Hale, MI, in Iosco County, the economics of Section 8 housing can be clearly understood by analyzing the SAFMR (Small Area Fair Market Rent) and local market rent figures. For a two-bedroom apartment, the SAFMR for FY 2026 is set at $990. This figure represents the maximum amount that the Section 8 program will pay for rent in this specific ZIP code.
The local market rent, according to the Census ACS, is currently at $882. This indicates that the average rent charged by landlords for a two-bedroom unit in this area is below the SAFMR. However, landlords should understand that the actual payment they receive from a Section 8 voucher depends on several factors including the tenant's contribution and utility allowances.
A landlord who participates in the Section 8 program will receive a reimbursement that covers the difference between the tenant's portion and the total rent. The tenant is required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this area, the calculation would look like this:
Utility allowances vary but are generally modest. These allowances are meant to cover the cost of utilities and are added to the rent subsidy. In ZIP 48739, the utility allowance might not significantly affect the overall reimbursement since it is usually a fixed amount per bedroom type.
Given these numbers, landlords in ZIP 48739 can expect a slight surplus when renting a two-bedroom unit to a Section 8 participant. The local market rent is $882, while the SAFMR is $990, creating a potential surplus of $108 per month over the market rate. This surplus compensates landlords for participating in the program and helps ensure that rental units remain affordable for low-income families.
However, landlords must also consider that the SAFMR is a ceiling, meaning that if the market rent is higher than $990, the program will not cover the excess. Therefore, setting rents above the SAFMR is not advisable as it could prevent tenants from securing a lease under the voucher program.
In summary, the economics of Section 8 in ZIP 48739 offer landlords a stable and slightly above-market rate for two-bedroom apartments. The SAFMR of $990 ensures that landlords are paid a fair amount, while the local market rent of $882 means a small surplus for landlords who participate in the program.
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.