Location: Lansing-East Lansing, MI | Metro: Lansing-East Lansing, 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 | $880 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,470 | $290,883 | 0.51% | F |
| 4BR | $1,520 | $346,403 | 0.44% | F |
U.S. Census Bureau data (2024)
In ZIP code 48819, the economics of Section 8 can be quite different from the broader market due to specific rental policies and subsidies. The SAFMR (Section 8 Area FMR) for a two-bedroom apartment is set at $1070 per month for fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code.
Contrastingly, the local market rent for a two-bedroom unit in ZIP 48819 averages at $1,010 according to recent Census ACS data. This indicates that the SAFMR is slightly above the average market rent, which could be beneficial for landlords but also requires understanding the intricacies of how the voucher payments are structured.
The Section 8 program operates on a formula where the tenant is responsible for paying 30% of their adjusted monthly income towards rent, and the remainder is covered by the voucher. However, the total payment cannot exceed the SAFMR. Additionally, there are utility allowances that vary based on the size of the unit and the region. For a two-bedroom apartment, these utility allowances are typically around $300 per month, although exact figures depend on the specifics of the housing authority's policy in ZIP 48819.
To illustrate, if a tenant's portion of the rent is $300, then the voucher would cover the remaining $770 ($1070 - $300) plus the utility allowance, bringing the total reimbursement close to $1070. If the local market rent is lower, say $1,010, and the tenant's portion remains at $300, the voucher would cover $710 of the rent plus utilities, totaling $1,010. In this case, the landlord receives the full market rent, even though it's below the SAFMR.
The SAFMR being higher than the local market rent means that landlords might have some flexibility in setting rents closer to the $1070 mark without risking non-payment. However, they must ensure that the rent does not exceed the SAFMR, as any amount over this limit would not be reimbursed by the voucher program.
In ZIP 48819, the typical reimbursement gap or surplus for a two-bedroom voucher is a surplus of $60 per month, assuming the landlord sets the rent at the SAFMR level of $1070 and the local market rent is $1,010. This surplus occurs because the voucher covers the difference between the tenant's portion and the SAFMR, thus providing landlords with a slight cushion above the average market rent.
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.