Section 8 Fair Market Rent (FMR) for ZIP 48854 - 2027

Location: Lansing-East Lansing, MI | Metro: Lansing-East Lansing, MI MSA

Investment Score for ZIP 48854

D
Monthly Rent (2BR)
$1,400
Median Price (2BR)
$197,683
1% Rule
0.71%
Annual Yield
8.5%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,100
1 Bedroom$1,120
2 Bedrooms$1,400
3 Bedrooms$1,780
4 Bedrooms$1,840
5 Bedrooms$2,134
6 Bedrooms$2,390
7 Bedrooms$2,581
8 Bedrooms$2,710

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,400 $197,683 0.71% D
3BR $1,780 $281,455 0.63% D
4BR $1,840 $345,323 0.53% F
5BR $2,134 $414,753 0.51% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
19,529
Median Household Income
$94,716
Housing Units
7,795
Renter Percentage
17.0%
Occupancy Rate
96.0%
Renter Occupied
1,270

The ZIP code 48854, located in Mason, MI, has a population of 19,529 residents, with 17.0% being renters. This indicates that the majority of the population (83%) are homeowners, suggesting that this area is primarily dominated by homeowners rather than renters. The median household income in this ZIP code is $94,716, which is notably higher than the typical market rent of $1,202 per month.

To understand the financial impact on potential tenants, consider that the average rent of $1,202 consumes approximately 12.7% of the median household income. This calculation is derived from dividing the monthly rent by the annual median income ($1,202 / $94,716 * 12 months). Given the Federal Market Rent (FMR) for FY 2024 is $1,170, the market rent in Mason, MI, slightly exceeds this benchmark, but not significantly enough to deter most renters.

A landlord in Mason, MI, can expect a tenant pool that is financially stable. The typical tenant will likely have a household income above the median, making them capable of affording the market rent without it consuming an excessive portion of their income. While there is a presence of Section 8 vouchers, the overall demand is not as deep as it would be in areas with a higher percentage of renters. The combination of a moderate rental market and a relatively high median income supports a scenario where tenants can manage their rent payments effectively, even if they receive some assistance through vouchers.

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.