Section 8 Fair Market Rent (FMR) for ZIP 48858 - 2027

Investment Score for ZIP 48858

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	$890
1 Bedroom	$900
2 Bedrooms	$1,080
3 Bedrooms	$1,400
4 Bedrooms	$1,520
5 Bedrooms	$1,763
6 Bedrooms	$1,975
7 Bedrooms	$2,133
8 Bedrooms	$2,240

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	$1,080	$153,872	0.7%	D
3BR	$1,400	$211,013	0.66%	D
4BR	$1,520	$275,650	0.55%	F
5BR	$1,763	$285,941	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48858 (Mount Pleasant, MI) #### Section 8 Voucher Dynamics In ZIP code 48858, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1030 per month. This figure represents 24.1% of the median household income of $51,267. The FMRs for other bedroom sizes are as follows: 0BR at $870, 1BR at $880, 3BR at $1330, and 4BR at $1380. These figures are crucial for understanding the dynamics of Section 8 vouchers in the area. The FMRs are designed to reflect the average rent levels in the market. However, the actual rents can vary significantly. For instance, the Zillow median price for a two-bedroom home is $146,446, which translates into a monthly mortgage payment that is much higher than the FMR. The price-to-FMR ratio for a two-bedroom unit is 11.8x, indicating that the median home price is significantly higher than the rental FMR. This discrepancy means that Section 8 voucher holders face significant constraints in finding suitable housing. They must find landlords willing to accept the voucher amount, which may be lower than what is typically charged for a property in this price range. Additionally, the high price-to-FMR ratio suggests that many properties may not be affordable for voucher holders, leading to a limited pool of available units. #### Affordability & Renter Profile ZIP code 48858 has a population of 42,226, with 50.2% of residents being renters. This indicates a substantial rental market, but it also highlights the potential challenges faced by low-income households. With a median household income of $51,267, the affordability of housing becomes a critical issue. Given that 50.2% of the population are renters, and considering the occupancy rate of 90.3%, it appears that the rental market is relatively tight. There is a strong demand for rental properties, especially those that are affordable. The high occupancy rate suggests that there might be fewer vacant units available, making it harder for renters to find suitable housing. Moreover, the fact that 24.1% of the median income is allocated to a two-bedroom apartment implies that many renters are likely to be low-income families who rely heavily on assistance programs like Section 8. This demographic makes up a significant portion of the rental market, and their ability to find affordable housing is essential for maintaining the stability of the community. #### Investor Angle From an investor's perspective, the ZIP code 48858 presents both opportunities and challenges. The FMRs provide a baseline for rental pricing, but the actual market conditions can influence whether these rents are sufficient to cover operating costs and generate a profit. For a two-bedroom unit, the FMR of $1030 is a key benchmark. Given the high price-to-FMR ratio of 11.8x, it is clear that the typical home value far exceeds the rental income generated by the FMR. However, for investors focusing specifically on Section 8 properties, the FMR is the primary consideration. To determine if the ZIP is cash-flow positive at FMR, we need to consider the typical operating expenses for a rental property. Assuming a conservative estimate of 50% of the rent going towards expenses (including mortgage, taxes, insurance, maintenance, and management), the net income would be approximately $515 per month for a two-bedroom unit. This is a modest profit margin, but it can still be viable for investors who are looking for stable, long-term returns rather than high yields. The investment grade for this ZIP code would be considered moderate. While the rental market is tight, and there is a significant demand for affordable housing, the profitability is limited due to the high price-to-FMR ratio. Investors should carefully evaluate the potential for appreciation and the stability of the local economy before committing to investments in this area. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that are closer to the FMR levels. A two-bedroom unit priced at $1030 per month is more likely to attract Section 8 tenants and ensure steady cash flow. Avoid properties that are priced significantly above the FMR, as they will be less attractive to voucher holders. 2. **Consider Multi-Family Properties**: Given the high occupancy rate and the significant percentage of renters, multi-family properties may offer better opportunities for cash flow. A property with multiple units can spread the fixed costs across several tenants, potentially improving the overall financial performance. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help streamline the process of accepting Section 8 vouchers. Understanding the specific requirements and procedures can reduce administrative overhead and make the investment more efficient. #### Bottom Line For Section 8-focused investors, ZIP code 48858 presents a mixed picture. While there is a strong demand for affordable housing and a significant number of renters, the high price-to-FMR ratio limits the profitability of individual units. Therefore, the recommendation is to **Hold**. Investors should maintain existing properties and focus on optimizing operations to improve cash flow. New investments should be approached cautiously, with a preference for properties that align closely with the FMR guidelines and have the potential for stable, long-term returns.

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.