Location: Ionia 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 | $970 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $179,658 | 0.78% | D |
| 3BR | $1,790 | $259,427 | 0.69% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 48851, located in Lyons, MI, Ionia County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1050. This figure is crucial because it directly influences the amount a landlord can expect to receive from a Section 8 voucher.
Local market rent for a similar two-bedroom unit averages $1,073, according to the Census ACS data. Landlords should be aware that the SAFMR is typically lower than the market rent, which can create a financial gap they need to consider when deciding whether to participate in the Section 8 program.
When a tenant uses a Section 8 voucher, they pay 30% of their adjusted income toward rent. The remainder, up to the SAFMR, is paid by the housing authority. For instance, if a tenant's portion is $300, the housing authority would cover the difference up to the SAFMR, which in this case would be $750. However, it’s important to note that the total reimbursement cannot exceed the SAFMR of $1050.
In addition to the base rent, there are utility allowances that can vary. These allowances are designed to help cover the cost of utilities such as electricity, water, and gas. Utility allowances are calculated separately and added to the base rent reimbursement. In ZIP 48851, the utility allowance for a two-bedroom unit is typically around $200. This means that if the tenant's portion is $300, the housing authority will pay $750 for rent plus $200 for utilities, totaling $950.
To illustrate, let's assume a tenant's portion is $300, the housing authority covers $750 for rent, and $200 for utilities. This totals $1050, which matches the SAFMR. If the local market rent is $1,073, the landlord would have a reimbursement gap of $23 per month, meaning they would receive less than the market rent.
In ZIP 48851, landlords who choose to accept Section 8 vouchers will generally face a small monthly shortfall compared to the local market rent. This gap is the difference between the SAFMR and the actual market rent, which in this case is $23. While this might seem insignificant, it can add up over time and affect overall profitability, especially for small-portfolio investors managing multiple 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.