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 | $1,040 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $103,167 | 1.29% | A |
| 3BR | $1,690 | $148,783 | 1.14% | B |
| 4BR | $1,750 | $173,906 | 1.01% | B |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 48915 in Lansing, MI, might have several valid concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these concerns directly using available data.
Will FMR $1100 (zip FY 2024) cover the mortgage on a $122,833 home?
The Fair Market Rent (FMR) for ZIP 48915 is set at $1100 per month for fiscal year 2024. This figure needs to be compared against the expected mortgage payments for a home priced at $122,833. Assuming a 30-year fixed-rate mortgage with an interest rate of 5%, the monthly mortgage payment would be approximately $630. With property taxes and insurance estimated at around $200 per month, the total monthly cost to cover the mortgage would be roughly $830. Therefore, the FMR of $1100 is sufficient to cover the mortgage and other associated costs, leaving a buffer of $270 per month for maintenance and other expenses.
Is there enough renter demand at 35.3%?
Renter demand in ZIP 48915 is represented by the percentage of households that are renters, which stands at 35.3%. While this percentage may seem low, it indicates that there is still a significant number of potential tenants who could occupy rental properties. In a ZIP code with a total of 10,000 households, 35.3% translates to approximately 3,530 renter households. Given the size of the population and the availability of rental units, this level of demand should support a viable investment portfolio, especially when targeting the Section 8 market.
Will vouchers keep pace with $1,084 market rents?
The average market rent in ZIP 48915 is $1,084 per month. The voucher amount, however, is tied to the FMR, which is currently $1100. This means that the voucher will generally cover the majority of the market rent, if not all of it, providing a stable source of income for landlords. However, the data does not provide a definitive forecast of future voucher amounts relative to market rents. It is prudent for investors to monitor local housing market trends and federal funding levels to anticipate any changes that could affect the balance between voucher amounts and market rents.
In conclusion, while there are legitimate concerns to consider when investing in ZIP 48915, the data suggests that the FMR is adequate to cover mortgage costs, and there is sufficient tenant demand to fill properties. Monitoring market conditions will be key to ensuring long-term stability and profitability of Section 8 investments in this area.
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.