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 | $1,080 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $265,929 | 0.52% | F |
| 3BR | $1,760 | $342,970 | 0.51% | F |
| 4BR | $1,810 | $444,495 | 0.41% | F |
| 5BR | $2,100 | $528,703 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 48820, located in Dewitt, Michigan, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $112,526. However, the market rent for a typical apartment, known as the Zillow Rent Index (ZORI), is set at $1,900 per month. This figure is notably higher than the Fair Market Rent (FMR) for Section 8 vouchers, which is $1,100 per month for the fiscal year 2024.
To put this into perspective, let's consider the financial burden on a household earning the median income. A monthly rent of $1,900 would represent approximately 17% of the median annual income. While this is manageable for many households, it does indicate a significant portion of their earnings going towards housing costs. On the other hand, the Section 8 voucher payment of $1,100 represents just under 10% of the median annual income, making it a more affordable option for those receiving assistance.
Given that only 14.5% of the population in ZIP 48820 are renters, and the total population is 18,357, the number of potential tenants is relatively limited. This means that landlords face a smaller pool of prospective tenants who can pay the market rate of $1,900 per month. Consequently, the affordability gap between the market rate and the voucher payment creates a competitive landscape for landlords. Those willing to accept Section 8 vouchers will have access to a broader tenant base, albeit at a lower rental rate.
The takeaway for landlords considering whether to adopt a voucher or cash-pay strategy is clear. Accepting Section 8 vouchers can provide a steady stream of income and reduce vacancy rates, especially given the limited number of renters in the area. However, landlords must also weigh the benefits of higher cash rents against the administrative requirements and potentially longer lease terms associated with voucher tenants. In summary, while the median income suggests that some households can afford market-rate rents, the majority of renters in ZIP 48820 may find the voucher payment more suitable. Landlords should carefully evaluate their options based on their investment goals and tolerance for the administrative aspects of working with vouchers.
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.