Section 8 Fair Market Rent (FMR) for ZIP 48864 - 2027

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

Investment Score for ZIP 48864

Monthly Rent (2BR)

$1,580

Median Price (2BR)

$236,643

1% Rule

0.67%

Annual Yield

8.01%

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	$1,240
1 Bedroom	$1,260
2 Bedrooms	$1,580
3 Bedrooms	$2,010
4 Bedrooms	$2,080
5 Bedrooms	$2,413
6 Bedrooms	$2,703
7 Bedrooms	$2,919
8 Bedrooms	$3,065

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,580	$236,643	0.67%	D
3BR	$2,010	$340,303	0.59%	F
4BR	$2,080	$452,683	0.46%	F
5BR	$2,413	$609,961	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

23,901

Median Household Income

$121,103

Housing Units

9,744

Renter Percentage

32.2%

Occupancy Rate

91.5%

Renter Occupied

2,870

The Okemos, MI area, represented by ZIP code 48864, is a suburban community known for its strong educational institutions and family-friendly environment. It is situated near Michigan State University, which influences the local economy and population demographics significantly. This analysis provides insights into the rental market dynamics, home values, and income levels that are crucial for landlords and small-portfolio investors.

Fair Market Rent (FMR): The FMR for Okemos, MI is set at $1280 for the fiscal year 2024, indicating the average rent level considered fair for the area.
Market Rent: The actual market rent, as measured by ZORI (Zillow Observed Rental Index), stands at $1,656, suggesting that the rental market is robust and above the government-set FMR.
Median Home Value: With a median home value of $390,267, Okemos offers a mix of affordable and high-end housing options.
Renter Share: Renter share of the total population is 32.2%, showing a significant portion of residents prefer renting over owning.
Days on Market (DOM): The data for days on market is not available, which might indicate a steady demand for rentals without significant fluctuations.
Median Income: The median household income in Okemos is $121,103, reflecting a relatively affluent community that can support higher rents.

In summary, Okemos presents a favorable investment climate for rental properties, given the discrepancy between the Fair Market Rent and the actual market rent, indicating potential for above-average returns. The high median income supports the ability of tenants to pay higher rents, while the substantial renter share suggests a consistent demand for rental units. The absence of fluctuating days on market implies stable tenant turnover, beneficial for long-term investments. Landlords and small-portfolio investors should consider these factors when evaluating the potential of their rental properties in this ZIP code.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.