Location: Shiawassee County, MI | Metro: Shiawassee 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 | $930 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,690 | $244,157 | 0.69% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP 48857 in Shiawassee County, MI, reveals several key points for landlords and small-portfolio investors.
First, regarding the rent math, the comparison between the Fair Market Rent (FMR) and the market rent highlights a significant discrepancy. The FMR for ZIP 48857 in fiscal year 2024 is set at $1030, whereas the Census ACS indicates a market rent of $1,519. This suggests that properties receiving Section 8 subsidies will likely be priced below the market average, potentially making them less attractive for landlords who can secure higher rents on the open market.
Second, the acquisition cost in ZIP 48857 is centered around a median home value of $239,501. However, with the day DOM (Days on Market) being listed as N/A, it's unclear how long homes typically take to sell. Additionally, the N/A% price-cut share means we cannot determine the typical discount offered by sellers to facilitate a sale. These gaps make it challenging to assess the affordability of acquiring properties in this area specifically for Section 8 investment.
Third, tenant demand must be considered. With a population of 3,206 and only 8.9% of residents identified as renters, the pool of potential Section 8 tenants is relatively small. This low renter share could translate into limited demand for rental properties, particularly those that accept Section 8 vouchers.
In conclusion, while the median home value of $239,501 might seem reasonable for acquisition, the mismatch between the FMR of $1030 and the market rent of $1,519, along with the limited number of renters (8.9%), poses challenges for landlords seeking to invest in ZIP 48857 under the Section 8 program. The lack of data on days on market and price-cut shares further complicates the assessment of property acquisition costs. Therefore, landlords should carefully weigh these factors before considering investment 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.