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 | $1,060 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,080 | $79,390 | 1.36% | A |
| 2BR | $1,350 | $116,618 | 1.16% | B |
| 3BR | $1,720 | $204,469 | 0.84% | C |
| 4BR | $1,770 | $265,719 | 0.67% | D |
| 5BR | $2,053 | $301,055 | 0.68% | D |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP 48906 (Lansing, MI) for Section 8 properties hinges on three key questions:
1) Does FMR ($970) clear debt service on a $164,303 property?
If your debt service (including mortgage payments, taxes, insurance, and maintenance) is less than $970 per month, then the answer is yes. For example, if you secure a mortgage with a monthly payment of $700, add estimated property taxes of $150, insurance of $50, and maintenance costs of $50, totaling $950, the FMR would cover your expenses. However, if your total debt service exceeds $970, such as $1,000 or higher, the answer is no.
2) Is market rent ($1,202 ZORI) above, at, or below FMR?
The market rent of $1,202 is above the FMR of $970. This means that landlords can potentially charge more than the FMR for non-Section 8 tenants, which can be beneficial if you plan to diversify your tenant mix. However, for those exclusively interested in Section 8 tenants, the gap between FMR and market rent indicates a reliance solely on government subsidies might be challenging without additional sources of income.
3) Are 30.7% renters + 20-day DOM enough demand?
The rental rate of 30.7% suggests a moderate level of demand, as nearly one-third of the population rents their homes. Combined with an average of 20 days on the market (DOM), this indicates that rental properties are filling relatively quickly. If you require a high turnover rate and can manage properties effectively, this is sufficient demand. However, if you prefer areas with higher rental rates or shorter DOM, ZIP 48906 might not meet your criteria.
Based on these factors:
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.