Section 8 Fair Market Rent (FMR) for ZIP 48823 - 2027

Investment Score for ZIP 48823

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,210
1 Bedroom	$1,230
2 Bedrooms	$1,540
3 Bedrooms	$1,960
4 Bedrooms	$2,020
5 Bedrooms	$2,343
6 Bedrooms	$2,624
7 Bedrooms	$2,834
8 Bedrooms	$2,976

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,230	$119,279	1.03%	B
2BR	$1,540	$221,975	0.69%	D
3BR	$1,960	$306,537	0.64%	D
4BR	$2,020	$379,652	0.53%	F
5BR	$2,343	$450,627	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48823 (East Lansing, MI) #### Section 8 Voucher Dynamics In ZIP code 48823, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1450 per month for 2026. This represents 33.4% of the median household income of $52,018. However, the actual median rent for a two-bedroom unit on Zillow is $215,122 annually, which translates to approximately $17,927 per month. The price-to-FMR ratio of 12.4x indicates that the actual rental prices are significantly higher than the FMR, creating a substantial gap between what voucher holders can afford and the actual market rates. This means that voucher holders are constrained by the limited availability of units that accept their vouchers and fall within the FMR range. Given the high actual rental prices, landlords who accept Section 8 vouchers might struggle to find tenants willing to pay the full market rate, leading to a potential mismatch between demand and supply. #### Affordability & Renter Profile The ZIP code has a population of 50,034, with 57.8% of residents being renters. This suggests a strong rental market, driven largely by the student population and young professionals associated with Michigan State University. The occupancy rate stands at 89.2%, indicating a relatively tight market where most available units are occupied. Given the high percentage of renters and the median household income of $52,018, it is likely that many residents rely on financial assistance such as Section 8 vouchers to manage their housing costs. The median rent for a two-bedroom unit is $17,927 per month, far exceeding the FMR of $1450, making it challenging for low-income renters to find affordable housing without subsidies. #### Investor Angle From an investor perspective, the ZIP code offers mixed opportunities. The FMR for a two-bedroom unit is $1450, but the actual median rent is $17,927 per month. This discrepancy suggests that properties priced at FMR levels could be cash-flow positive, especially if they are well-maintained and located in desirable areas. However, the high actual rental prices indicate that there is significant competition from non-subsidized rentals, which could affect the number of voucher holders willing to move into these units. The investment grade for this ZIP code would depend on the ability to attract tenants who can afford the FMR. Given the high percentage of renters and the strong demand for housing, there is potential for positive cash flow, but investors must carefully consider the local market dynamics and the willingness of voucher holders to move into units at FMR levels. #### Specific Actionable Insights 1. **Targeting Affordable Units**: Investors should focus on acquiring properties that are already priced at or below the FMR levels. For example, a two-bedroom unit priced at $1450 per month would be attractive to voucher holders and could ensure steady occupancy and positive cash flow. 2. **Marketing to Voucher Holders**: Given the high actual rental prices, marketing efforts should emphasize the benefits of accepting Section 8 vouchers. This includes highlighting the stability of rental income and the potential for long-term tenancy. Additionally, investors should consider offering amenities that appeal to young renters, such as modern appliances, high-speed internet, and proximity to university facilities. #### Bottom Line For Section 8-focused investors, the ZIP code 48823 presents a challenging yet potentially rewarding opportunity. While the high actual rental prices create a significant gap between FMR and market rates, the strong rental market and high percentage of renters suggest a need for affordable housing. **Recommendation**: **Hold**. Investors should hold onto properties that are already priced at or below FMR levels and consider renovations or improvements that could make them more attractive to voucher holders. However, purchasing new properties at the current market rates would likely result in negative cash flow for Section 8 tenants, making it less advisable to buy at this time.

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.