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 | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,490 | $167,617 | 0.89% | C |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 48853 might have several concerns regarding the viability of investing in rental properties here. Let's address these concerns directly using the available data.
Will FMR $960 (zip FY 2024) cover the mortgage on a $154,351 home?
The Fair Market Rent (FMR) for ZIP 48853 is set at $960 for the fiscal year 2024. To determine if this will sufficiently cover a mortgage payment on a home priced at $154,351, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment would be approximately $830. The FMR of $960 comfortably covers this amount, leaving a buffer of $130 per month. However, this analysis does not account for additional costs such as property taxes, insurance, maintenance, and potential vacancy periods, which could impact overall profitability.
Is there enough renter demand at 28.7%?
The percentage of renter-occupied units in ZIP 48853 stands at 28.7%. While this figure suggests that a significant portion of residents own their homes, it still indicates a substantial number of renters. For context, a 28.7% rental rate is not unusually low; many areas see lower percentages of renters. The key factor is whether this rental population is stable and growing, which would support higher occupancy rates and potentially higher rents. Unfortunately, the provided data does not offer insights into the trend or stability of the rental market in this area.
Will vouchers keep pace with $433 market rents?
The median voucher amount issued in ZIP 48853 is $433, which is notably lower than the FMR of $960. This discrepancy raises questions about the ability of voucher holders to afford market rents without additional income sources. Landlords who rely heavily on voucher recipients may face challenges in maintaining full occupancy or covering operational costs. However, the data does not provide a complete picture of the local housing market dynamics, including the proportion of voucher users among all renters and any trends in voucher amounts over time.
In conclusion, while the FMR of $960 appears sufficient to cover the mortgage on a home valued at $154,351, other factors such as property taxes, insurance, and maintenance costs must also be considered. The rental demand, though not exceptionally high at 28.7%, still represents a considerable segment of the market. Lastly, the gap between voucher amounts and market rents poses a risk that could affect the financial health of rental properties in this ZIP code.
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.