Location: Branch County, MI | Metro: Branch County, MI
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 | $980 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $186,596 | 0.59% | F |
| 3BR | $1,500 | $245,292 | 0.61% | D |
| 4BR | $1,530 | $294,697 | 0.52% | F |
| 5BR | $1,775 | $376,724 | 0.47% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 49036, Coldwater, MI, within Branch County, hinge on understanding the SAFMR (Small Area Fair Market Rent) and how it interacts with the local rental market. For fiscal year 2026, the SAFMR for a two-bedroom apartment in this ZIP code is set at $980. This figure represents the maximum amount that a Section 8 Housing Choice Voucher can cover for rent in this specific area. However, the local market rent for a similar unit, based on Census ACS data, is slightly lower at $967.
Landlords who accept Section 8 vouchers should be aware that the total reimbursement they receive is composed of two parts: the tenant's portion of the rent and the voucher subsidy. The tenant is responsible for paying 30% of their adjusted income towards rent. If we assume an average household income eligible for Section 8 assistance, the tenant's contribution could range widely but is often less than the full market rent.
To illustrate, if a tenant's adjusted income is $1,000 per month, they would pay 30% of that, which is $300, towards the rent. The remaining amount up to the SAFMR of $980 would be covered by the voucher program. In this scenario, the voucher would cover $680. It's important to note that the voucher also includes utility allowances, which can vary but are typically around $200-$300 per month for a two-bedroom unit.
Therefore, the total reimbursement a landlord might receive from a Section 8 voucher for a two-bedroom apartment could be around $880-$980, depending on the exact utility allowance and the tenant's income. Given the local market rent of $967, this leaves a potential reimbursement gap or surplus. In this case, since the SAFMR is slightly above the market rent, landlords accepting a Section 8 voucher for a two-bedroom unit could expect a slight surplus of about $13-$113 per month, assuming the tenant's income and utility allowance are as described.
This surplus allows landlords to remain competitive with the local rental market while still benefiting from the stability that comes with government-backed rent payments. However, landlords must ensure that their units meet the Housing Quality Standards (HQS) required by the Section 8 program to qualify for the reimbursement.
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.