Location: Niles, 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 | $750 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $593,509 | 0.18% | F |
| 3BR | $1,410 | $787,048 | 0.18% | F |
| 4BR | $1,420 | $1,100,320 | 0.13% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 49129, specifically Union Pier, MI, in Berrien County, are based on the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1040 for fiscal year 2024. This SAFMR figure is unique to this specific ZIP code, meaning it is tailored to reflect the rental market conditions here.
To understand how this affects landlords, consider the following breakdown. The total rent for a two-bedroom unit under Section 8 cannot exceed the SAFMR of $1040. The tenant is responsible for paying 30% of their adjusted income towards rent, and the rest is subsidized by the government. However, there's a cap on the amount the government will pay, which is also tied to the SAFMR.
Utility allowances are an additional factor. For ZIP 49129, the government provides a standard utility allowance to cover costs such as electricity, water, and gas. These allowances can vary but are typically around $300-$400 per month for a two-bedroom apartment. This means that if the tenant's share plus the utility allowance does not meet the SAFMR, the landlord will receive the difference from the government to ensure the total payment reaches $1040.
For instance, if a tenant's share is calculated at $600 and the utility allowance is $350, the total would be $950. In this case, the government would make up the difference, paying the landlord $90 to reach the SAFMR of $1040. This ensures that landlords receive a consistent and fair amount for renting to Section 8 participants.
The reimbursement gap or surplus arises when comparing the SAFMR to the actual market rent. Since the local market rent data is currently unavailable, we cannot provide a precise comparison. However, given the SAFMR of $1040, landlords should expect a reimbursement that closely matches this figure, minus any utility allowances. If the market rent is lower than the SAFMR, landlords may see a surplus. Conversely, if the market rent exceeds $1040, there would be a gap where landlords might have to accept a lower rent than they could potentially charge in the open market.
In summary, landlords in ZIP 49129 can expect a guaranteed reimbursement of $1040 for a two-bedroom apartment, with the tenant and government covering the total cost. The exact reimbursement breakdown depends on the tenant's income and the utility allowance, but the overall SAFMR sets a reliable economic framework for participating in the Section 8 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.