Location: Lansing-East Lansing, 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 | $990 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $205,265 | 0.62% | D |
| 3BR | $1,620 | $303,636 | 0.53% | F |
| 4BR | $1,740 | $380,101 | 0.46% | F |
| 5BR | $2,018 | $451,394 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 48837, located in Grand Ledge, Michigan, presents a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1070, while the market rent, measured by ZORI, stands at $1385. This creates a difference of $315 per month, which equates to approximately 29.4% of the FMR.
The disparity between these two figures means that landlords who accept Section 8 vouchers will be renting their properties below the open-market rate. In Grand Ledge, where the median home value is $296,706 and the median income is $96,517, this gap can significantly impact the financial viability of such investments. Only 18.1% of the population are renters, indicating a smaller pool of potential tenants compared to owner-occupiers.
Landlords must carefully consider the implications of this gap. Renting below the market rate can reduce the overall rental yield. However, the stability of Section 8 payments and the guaranteed income from the federal government can offset some of these risks. It is important to balance the lower monthly rent against the broader economic context of Grand Ledge, including the local rental market dynamics and the percentage of residents who rely on rental housing.
In conclusion, the $315 monthly gap between the FMR and market rent in ZIP 48837 represents a challenge for landlords and small-portfolio investors. While it does mean accepting a lower rent than what could be obtained in the open market, the benefits of stable and secure income through Section 8 should also be factored into any investment decision.
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.