Location: Shiawassee County, MI | Metro: Livingston County, MI HUD Metro FMR Area
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 | $1,140 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $185,062 | 0.71% | D |
| 3BR | $1,830 | $267,779 | 0.68% | D |
| 4BR | $2,060 | $340,927 | 0.6% | D |
U.S. Census Bureau data (2024)
The potential risks for a first-time Section 8 landlord in ZIP code 48872 in Perry, MI, are significant and should be carefully considered before investing. One major concern is tenant turnover, which can be higher when market rents are $1,131 compared to the Fair Market Rent (FMR) of $1,140 for FY 2024. This slight discrepancy between market rents and FMRs may lead to tenants seeking better deals, increasing the likelihood of frequent moves and thus higher turnover rates.
Vacancy exposure is another issue, particularly since the days on market (DOM) data is not available. This lack of information makes it difficult to predict how long a property might remain vacant between tenants, which can significantly impact cash flow and overall profitability. Landlords must be prepared for periods where the property does not generate rental income.
Deferred maintenance exposure is also a critical risk factor. With a typical home value of $267,372 and a median income of $79,333, residents may struggle to afford substantial repairs or upgrades, leading to a higher need for landlords to invest in maintaining their properties. This financial burden can be considerable and must be factored into any investment strategy.
However, these risks are somewhat offset by the high concentration of renters in the area. The renter share stands at 18.4%, indicating a robust demand for rental housing and likely a strong interest in Section 8 vouchers. High renter density often correlates with greater voucher utilization, which can stabilize occupancy rates and provide a steady stream of tenants.
In conclusion, the risks associated with becoming a first-time Section 8 landlord in ZIP code 48872 in Perry, MI, are moderate. While there are challenges related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers some mitigation.
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.