Location: Battle Creek, MI | Metro: Battle Creek, 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 | $810 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $121,253 | 0.96% | C |
| 3BR | $1,380 | $152,524 | 0.9% | C |
| 4BR | $1,560 | $157,821 | 0.99% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 49037, located in Battle Creek, Michigan, within Calhoun County, operate under specific financial guidelines that directly impact landlords and small-portfolio investors. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $940. This figure is crucial because it represents the maximum amount that the housing authority will pay toward a tenant's rent subsidy for a unit in this specific area.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), stand at $1,059 for a similar two-bedroom unit. This indicates that landlords could potentially charge more than the SAFMR if they wish to, but the tenant's portion of the rent would remain consistent based on their income and the voucher program rules.
A Section 8 voucher payment consists of two primary components: the housing authority's contribution and the tenant's contribution. The tenant is typically required to pay 30% of their adjusted monthly income toward rent. If a tenant's income is low enough, their contribution might be minimal, but it cannot exceed 40% of the total rent. The housing authority then covers the difference between the tenant’s payment and the SAFMR.
To illustrate, let's assume a tenant with an adjusted monthly income of $1,500. Their portion of the rent would be $450 (30% of $1,500). With a SAFMR of $940, the housing authority would cover the remaining $490. However, if the landlord charges $1,059, the housing authority still only reimburses up to $940. Therefore, the landlord would receive $450 from the tenant plus $490 from the housing authority, totaling $940, leaving a shortfall of $119 per month.
In addition to the base rent, landlords should consider utility allowances when calculating the overall economic impact of a Section 8 tenant. These allowances vary but can add a few hundred dollars to the total reimbursement. For instance, if the utility allowance is $200, the total reimbursement could rise to $1,140, which would fully cover the $1,059 market rent and leave a surplus of $81 for the landlord.
However, if the utility allowance does not increase the reimbursement above the SAFMR, landlords who charge market rates will face a shortfall. In ZIP 49037, given the SAFMR of $940 and a market rent of $1,059, landlords will generally experience a $119 monthly shortfall unless they adjust their rent or utility allowances accordingly.
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.