Location: Lansing-East Lansing, MI | Metro: Lansing-East Lansing, 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 | $960 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $214,621 | 0.57% | F |
| 3BR | $1,550 | $319,553 | 0.49% | F |
| 4BR | $1,600 | $431,071 | 0.37% | F |
| 5BR | $1,856 | $550,474 | 0.34% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 48895, which encompasses Williamston, MI, hinges on the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1050, while the Census ACS reports the market rent at $945. This creates a gap of $105, representing approximately an 11% difference.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors should consider this area a yield play. Voucher tenants provide a guaranteed source of income through the Housing Choice Voucher program, ensuring a steady stream of rental payments that align with the higher FMR. This means that landlords can potentially charge above the typical market rate without the risk associated with open-market tenancy.
In the context of Williamston, MI, where only 14.4% of residents are renters, the median home value stands at $324,239, and the median income is $93,418, the attractiveness of Section 8 properties becomes even more pronounced. The relatively low percentage of renters indicates a limited pool of potential tenants, making the security of voucher-based rental income particularly valuable. Moreover, the median income figure suggests that many local residents might find it challenging to afford the median home value, thus relying on rental options, including those supported by Section 8 vouchers.
The financial benefits of participating in the Section 8 program in Williamston, MI, are significant. By renting properties at the FMR of $1050, landlords can command higher rents than the average market rate of $945, thereby increasing their yield. This scenario is ideal for investors looking to capitalize on a niche market where the government subsidizes a portion of the rent, ensuring timely and consistent payments.
However, it's important to note that landlords must comply with the regulations set forth by the Section 8 program. These include maintaining the property to certain standards and undergoing regular inspections. Despite these requirements, the gap between the FMR and the market rent makes this a lucrative opportunity for landlords willing to engage with the program.
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.