Location: Lansing-East Lansing, MI | Metro: Ionia 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 | $880 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,470 | $340,205 | 0.43% | F |
| 4BR | $1,740 | $368,322 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 48894 might raise several concerns regarding the viability of renting properties through the Section 8 program. Let's address these concerns directly using the available data.
Objection 1: Will Fair Market Rent (FMR) of $960 for ZIP 48894 in fiscal year 2024 cover the mortgage on a $337,705 home?
The FMR of $960 does not guarantee that it will cover the mortgage payment on a $337,705 home. The mortgage payment depends on various factors including interest rates, loan terms, and down payments. However, using an average fixed-rate mortgage of 4% and assuming a 20% down payment, the monthly mortgage payment for a $337,705 home would be approximately $1,370. This amount exceeds the $960 FMR, indicating that landlords would need additional income sources or higher occupancy rates to cover the mortgage.
Objection 2: Is there enough renter demand at 7.9%?
The 7.9% vacancy rate suggests a relatively tight rental market in ZIP 48894. A lower vacancy rate generally indicates higher demand among renters. However, the percentage alone does not provide a complete picture. To determine if there is sufficient demand, one must consider the total number of rental units and the population size. With a vacancy rate of 7.9%, landlords can expect a competitive environment for finding tenants, but it also implies that there is a strong pool of potential renters.
Objection 3: Will vouchers keep pace with market rents of $689?
The FMR of $960 for ZIP 48894 is above the current market rent of $689, which means that voucher holders could potentially afford homes priced closer to the FMR. However, whether the vouchers will keep pace with future increases in market rents is uncertain based on the provided data. Historical trends show that FMRs adjust annually, but the exact correlation between FMR adjustments and market rent changes is not specified here. Landlords should monitor both FMR and market rent trends closely to anticipate any discrepancies.
In conclusion, while the FMR of $960 may not fully cover the mortgage on a $337,705 home, it does offer a competitive edge over market rents. The low vacancy rate suggests strong tenant demand, but it is crucial to understand the local rental market dynamics beyond just percentages. Lastly, the current FMR exceeds market rents, but long-term sustainability requires vigilance in tracking both FMR and market rent fluctuations.
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.