Location: Shiawassee County, 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 |
|---|---|---|---|---|
| 2BR | $1,150 | $163,420 | 0.7% | D |
| 3BR | $1,470 | $226,681 | 0.65% | D |
| 4BR | $1,520 | $227,083 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 48831 (Elsie, MI) reveals two distinct scenarios based on the Fair Market Rent (FMR) and market rent figures for a 2BR property. The annualized FMR for a 2BR unit in Elsie, MI, for FY 2024 is $960, while the Census ACS reported market rent stands at $916.
Given the median home value of $197,232, the implied gross yield for the Section 8 scenario can be calculated as follows:
Both scenarios indicate a very low gross yield, hovering around 0.5%. This suggests that properties in ZIP 48831 are not particularly attractive from a pure rental income perspective, especially when considering the high costs associated with property management and potential vacancies.
The 12.7% renter density in Elsie, MI, indicates a relatively low demand for rental properties. This makes the market rent scenario slightly more realistic, as it reflects the actual rental rates in the area. However, the N/A-day Days on Market (DOM) figure implies that there is little to no data on how quickly rental units are being leased, which could mean that the rental market is either stable or inactive.
In conclusion, the gross yields derived from both the Section 8 and market rent scenarios are nearly identical, at around 0.5%. Given the low renter density and lack of DOM data, the market rent scenario is more reflective of the current rental environment. Investors should consider these yields alongside other factors such as property appreciation and tax benefits before making investment decisions.
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.