Location: Gratiot County, MI | Metro: Gratiot County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 48862 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $970 per month for fiscal year 2026. This figure represents the maximum amount that the housing authority will pay on behalf of eligible tenants. It's important to note that this SAFMR is specific to this ZIP code, reflecting local rental conditions.
To understand the actual payment structure, landlords must factor in the tenant's portion of the rent and any utility allowances. Typically, the tenant is responsible for paying 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,617 for a household in ZIP 48862 (based on HUD guidelines), the tenant would owe approximately $485 per month. This leaves the housing authority to cover the remaining balance up to the $970 limit.
Utility allowances can vary but generally add a few hundred dollars to the total reimbursement. For instance, if the utility allowance is $200 per month, the total reimbursement to the landlord could be around $685 from the tenant and $285 from the housing authority, summing to $970.
However, the local market rent is currently unavailable, which means there isn't enough information to determine whether landlords in ZIP 48862 are experiencing a surplus or a gap compared to the market rates. In many cases, the SAFMR is lower than the market rent, leading to a reimbursement gap where landlords might need to subsidize the difference between the voucher payment and the market rate they would otherwise charge.
In summary, landlords in ZIP 48862 should expect a maximum reimbursement of $970 for a two-bedroom unit under the Section 8 program. This includes the tenant's contribution and any utility allowances. Without specific market rent data, it's unclear if this rate provides a surplus or creates a gap for landlords. To make informed decisions, landlords should monitor local rental trends and adjust their expectations accordingly.
Data Sources: FMR data from HUD (2027). 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.