Location: Gratiot County, MI | Metro: Gratiot County, MI
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 | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $190,871 | 0.71% | D |
| 4BR | $1,460 | $236,443 | 0.62% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 48847 are defined by the SAFMR (Small Area Fair Market Rent) set specifically for this ZIP. For a two-bedroom apartment, the SAFMR is $970 per month for fiscal year 2026. This figure is higher than the local market rent, which averages $836 according to the Census ACS.
A landlord should understand that the actual payment received from a Section 8 voucher is calculated differently. The reimbursement formula includes the tenant's portion of the rent plus any utility allowances. Typically, the tenant pays 30% of their adjusted income towards rent. If we assume an average adjusted income for a household in this ZIP, the tenant's portion might be around $250-$300 per month. However, this amount can vary based on the individual tenant's income level.
The utility allowance is an additional sum that covers the cost of utilities such as electricity, water, and gas. In ZIP 48847, the utility allowance for a two-bedroom unit is generally around $150-$200 per month. Therefore, the total reimbursement a landlord would receive from a Section 8 voucher for a two-bedroom unit could range between $400-$500 from the tenant and $150-$200 from the utility allowance, totaling approximately $550-$700.
This calculation shows that the landlord will receive less than the SAFMR but potentially more than the local market rent. Given the SAFMR of $970 and the typical local market rent of $836, landlords participating in the Section 8 program for a two-bedroom unit in ZIP 48847 will see a surplus of about $74-$134 per month, depending on the exact reimbursement figures. This surplus provides a buffer against the lower market rates and ensures a steady income stream.
In summary, the economics of Section 8 in ZIP 48847 favor landlords by offering a higher reimbursement rate compared to the local market. Landlords should factor in the SAFMR, tenant contribution, and utility allowance when determining the viability of accepting Section 8 vouchers for their properties.
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.