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 | $1,160 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,890 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $202,069 | 0.73% | D |
| 3BR | $1,890 | $274,386 | 0.69% | D |
| 4BR | $1,950 | $338,461 | 0.58% | F |
| 5BR | $2,262 | $370,374 | 0.61% | D |
U.S. Census Bureau data (2024)
The ZIP code 48842, located in Holt, Michigan, presents an interesting scenario when analyzing the renter's perspective. With a median household income of $88,340, residents have a decent financial cushion to cover living expenses. However, the market rate rent of $1,975 per month (ZORI) poses a significant challenge.
To put this into context, let’s compare it to the Federal Market Rent (FMR) for the area, which is set at $1,160 for zip code 48842 in fiscal year 2024. This means that the voucher payment standard is nearly half of the market rate, highlighting a substantial affordability gap for renters who rely on housing vouchers.
With 33.5% of the 21,945 population being renters, the competition among landlords for tenants is moderate. However, the disparity between the market rate and the voucher amount suggests that landlords might face challenges in filling units if they solely target cash-paying tenants. The average renter would need to allocate approximately 27% of their gross monthly income to cover the market rate rent, which exceeds the generally accepted guideline of 30% for housing affordability.
This situation implies that landlords should consider a mixed strategy when it comes to accepting tenants. While cash-paying tenants offer higher rental income, the significant number of potential voucher recipients could ensure steady occupancy rates. By accepting both cash payments and vouchers, landlords can balance income with the likelihood of having vacancies.
The takeaway for landlords is clear: diversifying tenant acquisition strategies to include both cash-paying and voucher-assisted tenants can help mitigate risks associated with high vacancy rates and ensure a stable income stream. Given the affordability gap, focusing solely on market rate rents may limit the pool of potential tenants and increase the risk of empty units.
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.