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 | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $123,176 | 0.98% | C |
| 3BR | $1,540 | $187,151 | 0.82% | C |
| 4BR | $1,590 | $228,407 | 0.7% | D |
| 5BR | $1,844 | $304,154 | 0.61% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 48911, Lansing, MI, within Ingham County, hinge on understanding the SAFMR (Small Area Fair Market Rent) and how it interacts with the local rental market. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this ZIP code is set at $980. This figure is specific to ZIP 48911 and does not apply uniformly across the broader metro or county area.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,025 for a similar unit. Landlords should note that the SAFMR is lower than the market rent, which can impact their decisions on whether to participate in the Section 8 program.
A Section 8 voucher works by covering the difference between what a tenant can afford and the rent amount. The tenant's contribution is typically 30% of their adjusted income. If we assume an average adjusted income for a household in ZIP 48911, the tenant might pay around $294 towards rent, based on a hypothetical income of $980 per month (this is illustrative; actual amounts vary).
In addition to the tenant's contribution, there are utility allowances that vary but are generally modest. For a two-bedroom apartment, these might add another $50-$100 to the total payment received by the landlord. Thus, combining the tenant's portion and the utility allowance, the landlord could receive approximately $344-$394 from the tenant and the allowance.
The remainder of the rent, up to the SAFMR of $980, would be covered by the housing authority. Therefore, the landlord receives a total of $980 per month for a two-bedroom unit under the Section 8 program.
This means that the typical reimbursement gap in ZIP 48911 is $45 per month ($1,025 - $980). Landlords must consider this gap when deciding to participate in the Section 8 program. While the program offers stable, government-backed rental income, it also requires adherence to certain regulations and may not fully cover market rents.
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.