Location: Van Buren County, MI | Metro: Kalamazoo-Portage, 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 | $760 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $194,501 | 0.54% | F |
| 3BR | $1,400 | $282,259 | 0.5% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 49065, located in Lawton, Michigan, within Van Buren County, operate under specific financial guidelines. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1110. This figure is crucial because it represents the maximum amount that a landlord can receive from the Section 8 program for a unit of this size. However, the local market rent for a similar two-bedroom apartment is considerably lower, at $735, according to Census ACS data.
A landlord participating in the Section 8 program will be reimbursed based on the SAFMR, but this does not mean they will receive the full $1110. The actual reimbursement is calculated by taking into account the tenant's portion of the rent and any utility allowances. Tenants are generally expected to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 (for illustrative purposes), the tenant would contribute $450 towards the rent. This leaves a balance of $660 to be covered by the Section 8 voucher.
In addition to the base rent, there are utility allowances which vary depending on the type of utilities included in the rental agreement. These allowances are designed to help cover the cost of electricity, gas, water, and other essential services. The exact amount of these allowances is determined by HUD (Housing and Urban Development) and can be found in the annual FMR publication. For simplicity, let’s say the utility allowance for a two-bedroom apartment in this area is around $200 per month. This would bring the total monthly reimbursement a landlord might receive to approximately $860 ($660 base rent + $200 utilities).
This means that if a landlord rents out a two-bedroom apartment at the local market rate of $735, they will have a surplus of about $125 per month when factoring in the utility allowance. Conversely, if they charge the full SAFMR rate of $1110, they would face a significant reimbursement gap of $250 per month, assuming the same tenant contribution and utility allowance figures. It is important to note that the SAFMR rate is specifically set for this ZIP code, making it a precise benchmark for the area.
In summary, landlords in ZIP 49065 should understand that while the SAFMR provides a cap for reimbursement, the actual amount received is contingent upon the tenant's contribution and utility allowances. Given the disparity between the SAFMR and the local market rent, landlords who participate in the Section 8 program can expect a surplus when renting at market rates, or a deficit if they charge closer to the SAFMR rate.
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.