Location: Lansing-East Lansing, 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 | $910 |
| 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 | $204,101 | 0.65% | D |
| 3BR | $1,830 | $282,017 | 0.65% | D |
| 4BR | $2,060 | $363,702 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 48892, centered around Webberville, MI, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 48892 in fiscal year 2024 is set at $1140, whereas the Census ACS data indicates that the average market rent stands at $817. This means there is a gap of $323, or approximately 28%, between what landlords can charge through Section 8 vouchers and the typical rental price.
In this scenario where the FMR exceeds the market rent, landlords and small-portfolio investors should recognize the potential for increased yields. By participating in the Section 8 program, landlords can command higher rents, closer to the FMR, which translates into better financial returns compared to renting properties at the current market rate. This is particularly advantageous given the relatively low percentage of renters in Webberville, estimated at 16.3%, indicating a smaller pool of competition for rental properties.
Moreover, the median home value in Webberville is $277,611, suggesting that property values are not excessively high, making it feasible for landlords to maintain properties at a reasonable cost while still benefiting from the elevated rental rates offered by Section 8 vouchers. The median household income in the area is $89,125, which provides further insight into the economic conditions that support the viability of the Section 8 program in this region.
The key advantage here is that landlords can secure a steady stream of rental income, backed by the government's commitment to cover the difference between the FMR and the tenant's contribution, which is typically 30% of their adjusted income. This ensures a reliable and consistent revenue source, even when the market rent is lower than the FMR.
However, it is important to note the implications of accepting voucher tenants. Landlords must adhere to HUD standards, which can sometimes be stringent and require additional maintenance or upgrades to meet eligibility criteria. Despite these costs, the gap between the FMR and the market rent makes it a favorable option for those looking to maximize their investment yields in Webberville, MI.
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.