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 | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,640 | $217,249 | 0.75% | D |
U.S. Census Bureau data (2024)
The ZIP code 48747, with a population of 1,549, has only 6.0% of its residents classified as renters. This indicates that the area is primarily dominated by homeowners rather than renters, which suggests that the demand for rental properties using Section 8 vouchers will be relatively low. The median household income in this ZIP code is $81,458, which is notably higher than the typical market rent of $1,147. To put this into perspective, the average rent consumes approximately 1.4% of the median household income, making it a financially manageable expense for most residents.
Comparing the market rent to the Fair Market Rent (FMR) set at $910 for FY 2024, it's evident that the actual rent in 48747 exceeds the FMR by about $237. This discrepancy means that landlords might find it challenging to attract tenants who rely solely on Section 8 vouchers, as the vouchers cover less than the market rent. Landlords should prepare to offer additional incentives or consider accepting tenants who can contribute extra towards their rent beyond the voucher amount.
The expected tenant profile in this ZIP code would likely include individuals or families who either have supplementary income sources to cover the difference between the voucher and market rent or are willing to accept the higher rent due to other desirable factors such as location, property amenities, or quality of living. Given the homeowner-dominated nature of the area, landlords should also be prepared for a tenant pool that may prioritize long-term stability and quality over cost alone.
In summary, while 48747 does not present a heavy demand for Section 8 vouchers due to its low percentage of renters, landlords can still cater to this segment by offering competitive rents and attractive living conditions that justify the premium above the FMR. The focus should be on providing value that aligns with the higher median income levels of the area.
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.