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 | $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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $242,849 | 0.47% | F |
| 3BR | $1,470 | $300,450 | 0.49% | F |
| 4BR | $1,520 | $319,788 | 0.48% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 48835, Fowler, MI, reveals some interesting dynamics between government-subsidized rental income and market rents. For the purpose of this analysis, we will consider the annualized Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $960 per month for fiscal year 2024. This translates into an annual rental income of $11,520. The median home value in this area is $297,296.
To calculate the gross yield, we divide the annual rental income by the median home value. In the case of the Section 8 scenario, the gross yield would be:
$11,520 / $297,296 = 3.88%
Next, let's look at the market rent scenario. The Census Bureau reports that the average market rent for a two-bedroom apartment in ZIP 48835 is $588 per month. When annualized, this equates to $7,056 per year. Using the same median home value, the gross yield based on market rent would be:
$7,056 / $297,296 = 2.37%
Given the 7.2% renter density in Fowler, it's important to note that the availability of tenants willing to pay market rates could be limited. The Section 8 program, however, ensures a stable tenant base with guaranteed rental payments, making the higher gross yield of 3.88% more likely in practice. Despite this, the lack of data on the Days on Market (DOM) makes it challenging to predict how quickly a property can be leased under either scenario.
In conclusion, while the market rent yields a lower gross yield of 2.37%, the Section 8 program provides a more secure and predictable income stream, resulting in a higher gross yield of 3.88%. For landlords and small-portfolio investors looking to minimize risk and ensure steady cash flow, the Section 8 option appears to be the more realistic choice given the current conditions in Fowler, MI.
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.