Location: Cass County, MI | Metro: Cass County, MI HUD Metro FMR Area
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 | $930 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $232,122 | 0.5% | F |
| 3BR | $1,490 | $308,324 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 49112, which includes Edwardsburg, MI, in Cass County, can be straightforward if you understand the key components. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1020. This figure is specifically tailored to reflect the rental conditions in this particular ZIP code, ensuring that it accurately represents the local housing market.
Local market rent, based on the Census ACS data, stands at $966 for a two-bedroom unit. This is lower than the SAFMR, indicating that the Section 8 program provides a slightly higher benchmark for acceptable rents. However, the actual reimbursement to landlords depends on the total amount agreed upon between the landlord and the housing authority, subject to the SAFMR cap.
A Section 8 voucher pays a significant portion of the rent directly to the landlord. The remaining balance, typically around 30% of the tenant's income, is paid by the tenant themselves. In ZIP 49112, assuming the tenant’s portion is $300 (based on a common 30% rule), the voucher would cover the difference up to the SAFMR limit. Therefore, if the agreed-upon rent is $1020, the voucher would pay $720 ($1020 - $300) directly to the landlord.
Utility allowances also factor into the overall payment structure. These allowances vary but generally add an additional $200-$300 per month to the total reimbursement. If we assume an average utility allowance of $250, then the total reimbursement to the landlord would be $970 ($720 + $250).
This means that in ZIP 49112, landlords can expect a reimbursement gap or surplus depending on the agreed-upon rent. Given the local market rent of $966, if the landlord sets the rent at the SAFMR level of $1020, they would receive a surplus of $4 ($970 - $966). Conversely, if the landlord sets the rent below the SAFMR, say at $966, they would still receive $970, creating a small surplus of $4 per month.
However, if the landlord sets the rent above $1020, the voucher will only cover up to $1020 plus the utility allowance, leading to a potential gap where the landlord must rely solely on the tenant's contribution for any excess over the SAFMR. For instance, if the rent is set at $1050, the landlord would receive $970, leaving a gap of $80 that the tenant would need to cover.
In summary, landlords in ZIP 49112 can expect a reimbursement of $970 for a two-bedroom apartment when the rent is set at $1020 and the utility allowance is $250. This creates a small surplus relative to the local market rent of $966. Landlords should carefully consider their pricing strategy to ensure they maximize their income while adhering to the SAFMR guidelines.
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.