Section 8 Fair Market Rent (FMR) for ZIP 48804 - 2027
Location: Isabella County, MI | Metro: Isabella County, MI
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
To determine if you should buy in ZIP code 48804 (Unknown, MI) for Section 8 purposes, follow this decision tree based on the provided data:
- 1) Does the Fair Market Rent (FMR) of $1,010 for the metro area in fiscal year 2026 cover the debt service on a property?
- If yes, proceed to the next question.
- If no, purchasing in this area for Section 8 is not advisable due to insufficient rental income to meet financial obligations.
- 2) Is the market rent above, at, or below the FMR of $1,010?
- If the market rent is above $1,010, then consider the next factor. Higher market rents indicate potential for higher returns outside of Section 8.
- If the market rent is at or below $1,010, proceed to the next question. This suggests that the FMR may be competitive with other rental options in the area.
- 3) Are there sufficient renters and days on the market (DOM) to ensure demand for your property?
- If the percentage of renters and the DOM indicate strong demand, then purchasing in ZIP 48804 for Section 8 can be considered a viable option. Strong demand means that properties are rented quickly, which is beneficial for cash flow.
- If the percentage of renters is low and the DOM is high, it suggests weak demand, making it difficult to find tenants even within the Section 8 program. In this case, investing in this ZIP code for Section 8 would not be recommended.
The key to deciding whether to invest in ZIP 48804 for Section 8 lies in the answers to these questions. The FMR must at least cover your debt service, the market rent should be comparable to or lower than the FMR, and there must be sufficient tenant demand. Without specific figures for market rent, percentage of renters, and DOM, a definitive recommendation cannot be made. However, if all conditions align favorably, the answer is yes; otherwise, it depends or no, respectively.
Data Sources: FMR data from HUD (2027).
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.