Location: Lansing-East Lansing, MI | Metro: Lansing-East Lansing, MI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
When considering whether to purchase a property in ZIP code 48933 for Section 8 investment, follow these decision points:
1) Does FMR ($960) clear debt service on a $164,540 property?
Yes. The Fair Market Rent (FMR) of $960 is sufficient to cover the debt service on a property valued at $164,540. This assumes that the monthly mortgage payment, including interest, taxes, and insurance, does not exceed $960. For most lenders, this would be feasible given typical interest rates and loan terms.
No. If the debt service exceeds $960, then purchasing for Section 8 purposes is not advisable unless you can secure a lower-cost property or find ways to reduce expenses.
2) Is market rent ($912) above, at, or below FMR?
Above FMR. If the market rent were above $960, then the property would be less attractive for Section 8 tenants. However, since the Zero Occupancy Rate Index (ZORI) indicates a market rent of $912, which is below the FMR, the property is competitive for both Section 8 and non-Section 8 tenants.
At FMR. Not applicable here as the ZORI is below the FMR.
Below FMR. Given that the ZORI is $912, which is below the FMR of $960, this ZIP code is attractive for Section 8 tenants. Landlords can expect a steady stream of qualified applicants willing to pay up to the FMR, thus maximizing rental income potential within the guidelines.
3) Are 94.3% renters + N/A-day DOM enough demand?
Yes. With 94.3% of the population being renters, there is significant demand for rental properties in ZIP code 48933. The N/A-day Days on Market (DOM) suggests that properties are either rented quickly or that data on rental times is not available. Either way, high renter concentration signals strong demand, making it a favorable environment for Section 8 investments.
No. Not applicable given the high percentage of renters and the lack of available DOM data, which implies quick turnover.
It depends. Not applicable in this scenario due to the clear indication of high demand from the renter percentage alone.
In summary, if the debt service on a $164,540 property is below $960, and given the market rent is below the FMR, and the high renter concentration, ZIP code 48933 presents a positive outlook for Section 8 investments. The combination of competitive rents and strong demand supports the viability of such an investment.
Data Sources: FMR data from HUD (2027). 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.