Location: Shiawassee County, MI | Metro: Saginaw, MI MSA
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 | $760 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,040 | $142,221 | 0.73% | D |
| 3BR | $1,400 | $202,019 | 0.69% | D |
| 4BR | $1,580 | $240,651 | 0.66% | D |
| 5BR | $1,833 | $291,687 | 0.63% | D |
U.S. Census Bureau data (2024)
The ZIP code 48867 encompasses a portion of Owosso, Michigan, characterized by a modest residential community with a total population of 27,500. In this area, approximately 24.0% of residents are renters, indicating a significant but not overwhelming demand for rental properties. The median household income stands at $59,825, which reflects a middle-class neighborhood where families can afford decent housing but might still seek assistance through programs like Section 8. The median home value in the region is $183,090, suggesting that homes are reasonably priced and accessible to many local residents.
When it comes to rent economics, the Fair Market Rent (FMR) for ZIP 48867 in fiscal year 2024 is set at $910. This figure is notably higher than the current market rent, which is reported at $828 according to the Census American Community Survey (ACS). This discrepancy indicates that there could be an opportunity for landlords who participate in the Section 8 program to receive slightly above-market rents, thereby improving their financial performance compared to those operating outside the voucher system.
In evaluating whether ZIP 48867 suits a hands-off voucher operator or requires a hands-on value-add buyer, several factors come into play. Given the relatively low percentage of renters and the middle-income status of the residents, a hands-off approach might suffice for landlords who wish to maintain stable cash flows without extensive property management efforts. However, the potential for higher rents under the Section 8 program also suggests that a hands-on strategy could be beneficial, especially for those looking to add value through property improvements or better tenant screening processes.
To summarize, ZIP 48867 offers a balanced environment for Section 8 investments, with a mix of manageable demand and financial incentives. Landlords can choose between a passive strategy, leveraging the FMR to secure steady income, or an active approach aimed at enhancing property value and optimizing 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.