Location: Cass County, MI | Metro: Niles, 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 | $740 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,410 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $241,353 | 0.44% | F |
| 3BR | $1,410 | $280,298 | 0.5% | F |
| 4BR | $1,500 | $352,714 | 0.43% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 49111, located in Eau Claire, MI, within Berrien County, operate under the Specific Area Fair Market Rent (SAFMR) system. For fiscal year 2024, the SAFMR for a two-bedroom apartment is set at $1160. This means that the rate is specifically tailored for this ZIP code, reflecting local housing costs.
In contrast, the local market rent for a two-bedroom unit, according to the Census American Community Survey (ACS), averages $761. This difference between the SAFMR and the local market rent can be significant for landlords participating in the Section 8 program.
When a tenant uses a Section 8 voucher, they are responsible for paying 30% of their adjusted income towards rent. The remaining amount is covered by the voucher up to the SAFMR limit. Additionally, there are utility allowances which vary based on the size of the unit and location. For ZIP 49111, these allowances must be factored into the total reimbursement.
To illustrate, let's assume a tenant has an adjusted income of $1000 per month. They would pay 30% of this, which is $300, towards rent. If the total rent for a two-bedroom apartment is $1160, then the voucher would cover the difference, which is $860. However, if the actual market rent is lower, say $761, the voucher would still only cover up to $860 of the rent, but since the total rent is below the SAFMR, the reimbursement would be less. In this case, the voucher would cover $461 ($761 - $300).
Utility allowances in ZIP 49111 add another layer to the reimbursement. These allowances are designed to help cover electricity, gas, water, and other utilities. The exact amount depends on the local cost of living and the type of unit. For a two-bedroom apartment, the utility allowance might be around $200, but this figure should be verified with the local housing authority.
Given the SAFMR of $1160 and the local market rent of $761, landlords in ZIP 49111 will typically see a surplus when renting to tenants with vouchers. The surplus is calculated by subtracting the local market rent from the SAFMR, which in this case is $400 ($1160 - $761). This means landlords can expect to receive the full local market rent plus an additional $400 from the voucher program, effectively covering the tenant's portion and any utility allowances.
In summary, landlords in ZIP 49111 can expect a positive cash flow when renting to tenants with Section 8 vouchers, with a typical surplus of $400 for a two-bedroom apartment. This surplus helps offset the administrative and management costs associated with the program.
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.