Location: Montcalm County, MI | Metro: Ionia County, MI HUD Metro FMR Area
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 | $1,030 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,570 | $265,871 | 0.59% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 48834 are defined by the SAFMR (Small Area Fair Market Rent) set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR is $1130 per month for fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this area. However, the local market rent, according to the Census ACS, is $875, which is significantly lower than the SAFMR.
A landlord participating in the Section 8 program should understand that the total reimbursement they receive is calculated based on the tenant's portion of the rent plus the utility allowance. Typically, the tenant is expected to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 for a tenant in this area, their contribution would be $450 per month. The remainder of the rent, up to the SAFMR of $1130, is covered by the voucher program.
In ZIP 48834, the voucher program will cover the difference between the tenant's contribution and the SAFMR, up to a maximum of $1130. Therefore, if a landlord charges the local market rent of $875, the voucher program will cover $425 ($875 - $450) of the rent, ensuring the landlord receives the full $875. Additionally, there is a utility allowance that varies but can range from $150 to $300 per month, depending on the family size and local utility costs.
To illustrate, if a landlord sets the rent at the local market rate of $875 and the tenant contributes $450, the voucher program will reimburse the landlord $675 ($425 for rent and a $250 utility allowance). This results in a surplus for the landlord since the reimbursement exceeds the local market rent. Conversely, if the landlord sets the rent higher than the local market rate but still within the SAFMR limit, the reimbursement might not fully cover the rent, creating a gap.
In summary, in ZIP 48834, the typical reimbursement for a two-bedroom apartment under the Section 8 program, when considering the local market rent of $875 and a tenant contribution of $450, along with a utility allowance of approximately $250, results in a surplus for the landlord. The landlord receives the full market rent of $875, while the voucher program covers $675 of that amount. This leaves a surplus of $205 above the SAFMR subsidy for the landlord.
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.