Location: Isabella County, MI | Metro: Midland, 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 | $820 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $130,870 | 0.83% | C |
| 3BR | $1,370 | $190,955 | 0.72% | D |
| 4BR | $1,520 | $217,500 | 0.7% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 48880 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $960, while the Census ACS reports an average market rent of $802. This creates a gap of $158, representing approximately 19.7% of the market rent.
In Saint Louis, Michigan, where the median home value is $164,314 and the median income is $59,922, landlords should be aware that only 20.8% of residents are renters. The higher FMR compared to the market rent suggests that properties leased through the Section 8 program can command rents above the local market average. This makes it a yield play for landlords who can secure tenants with vouchers, as they can potentially earn more per unit than what the open market offers.
However, accepting housing voucher tenants at rates below the open market also comes with considerations. Landlords must weigh the benefits of guaranteed rental payments against the administrative burdens and potential delays associated with the Section 8 program. Despite these challenges, the opportunity to charge closer to the FMR of $960 rather than the market rate of $802 provides a compelling reason for landlords to participate in the Section 8 program.
To summarize, the $158 or 19.7% gap between the FMR and market rent in ZIP 48880 presents a significant opportunity for landlords to increase their yields. Given the relatively low percentage of renters in Saint Louis, MI, and the financial realities of the area, participating in the Section 8 program can be a strategic move to attract stable tenants and achieve better rental income.
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.