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 | $1,010 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,640 | $316,910 | 0.52% | F |
| 4BR | $1,700 | $368,798 | 0.46% | F |
U.S. Census Bureau data (2024)
In ZIP 48821, the economics of Section 8 housing can be quite different from the broader market. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1280. This figure is specifically tailored for this ZIP code, reflecting the unique cost dynamics of the area.
However, the local market rent, according to the Census ACS, is lower at $1,065. This discrepancy means that landlords participating in the Section 8 program can expect a higher reimbursement rate compared to the average rental price in the area. Let's break down how this works:
The Section 8 voucher system is designed to cover a portion of the rent based on the SAFMR. Typically, the voucher covers about 70% to 75% of the rent, while the tenant is responsible for the remaining 25% to 30%. In ZIP 48821, if you charge the SAFMR rate of $1280, the voucher would cover approximately $900 to $960 of that amount. This leaves the tenant to pay roughly $320 to $380 per month.
Utility allowances also play a role in the reimbursement. These allowances vary but generally add a few hundred dollars to the total reimbursement. For instance, if the utility allowance is around $200, the total reimbursement to the landlord could be $1100 to $1160 per month for a two-bedroom unit.
Given these specifics, landlords in ZIP 48821 can expect a reimbursement that exceeds the local market rent. If you were to charge the market rate of $1065, the voucher would still cover a significant portion, leaving a surplus for the landlord. The exact surplus depends on the utility allowance and the percentage covered by the voucher, but it would typically range from a $35 to $195 monthly surplus above the local market rent.
To summarize, landlords in ZIP 48821 can benefit from the Section 8 program due to the higher SAFMR rate compared to the local market rent. By charging the SAFMR rate of $1280, landlords can receive a reimbursement that covers most of the rent plus utilities, resulting in a manageable gap between the voucher payment and the rent charged. If charging the market rate, there would be a surplus, making Section 8 an attractive option for those looking to stabilize their income and attract reliable tenants.
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.