Location: Huron 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 | $850 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,520 | $281,514 | 0.54% | F |
| 4BR | $1,560 | $327,168 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 48755 are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1,140 per month for fiscal year 2026. This figure represents the maximum amount that the housing authority will pay landlords participating in the Section 8 program for this specific ZIP code.
In contrast, the local market rent for a similar unit is reported at $862 according to the latest Census ACS data. This indicates that the SAFMR is higher than the average local market rent, which can be beneficial for landlords who wish to receive rates closer to the higher end of the market range.
A Section 8 voucher payment consists of two parts: the subsidy paid by the housing authority and the tenant's contribution towards rent. Typically, tenants are expected to pay 30% of their adjusted income towards rent. Utility allowances are also factored into the overall rental cost, but they do not increase the total amount that the housing authority will pay beyond the SAFMR cap.
To illustrate, if a tenant's adjusted income is $1,000 per month, they would contribute $300 (30%) towards the rent. The housing authority would then cover the remainder up to the SAFMR limit of $1,140. However, since the local market rent is lower at $862, the actual reimbursement to the landlord would be $862 minus the tenant's contribution. In this scenario, the landlord receives the full market rent plus a higher subsidy compared to the local market rate.
The typical reimbursement gap or surplus in ZIP 48755 for a two-bedroom unit is a surplus. Landlords receive a higher rate than the local market rent, meaning they are compensated above the usual market price. This surplus is calculated as follows:
The total compensation for landlords, therefore, is $862 (market rent) + $840 (subsidy) - $300 (tenant contribution), equating to $1,402. This exceeds the SAFMR cap of $1,140, so the landlord receives exactly $1,140 from the housing authority, plus the tenant's $300 contribution, totaling $1,140.
This analysis shows that landlords in ZIP 48755 benefit from Section 8 by receiving a higher rate than the local market rent, thus closing the gap between the SAFMR and the actual market conditions. The surplus for a two-bedroom unit is $278 per month, making it a financially attractive option for landlords.
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.