Section 8 Fair Market Rent (FMR) for ZIP 49201 - 2027

Investment Score for ZIP 49201

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$890
1 Bedroom	$980
2 Bedrooms	$1,200
3 Bedrooms	$1,580
4 Bedrooms	$1,580
5 Bedrooms	$1,833
6 Bedrooms	$2,053
7 Bedrooms	$2,217
8 Bedrooms	$2,328

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$980	$117,836	0.83%	C
2BR	$1,200	$194,898	0.62%	D
3BR	$1,580	$264,126	0.6%	F
4BR	$1,580	$336,526	0.47%	F
5BR	$1,833	$380,790	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 49201 (Jackson, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 49201 in Jackson, MI, indicate that the rent for a two-bedroom unit is set at $1160 per month. This represents 18.7% of the median household income in the area, which stands at $74,484. However, the actual rental market appears to be significantly higher. The Zillow median price for a two-bedroom unit is $185,554, suggesting that the average monthly rent could be much higher than the FMR. Given the Price-to-FMR ratio of 13.3x, it is likely that landlords would charge well above the FMR to cover their costs and maintain profitability. For instance, if we assume a conservative annual rental yield of 5%, the monthly rent for a property priced at $185,554 would be around $773 per month, but considering the high Price-to-FMR ratio, the actual rent could be closer to $15,400 per year, or approximately $1283 per month. This means that voucher holders face significant constraints, as they might struggle to find units that accept their vouchers due to the disparity between FMR and market rents. #### Affordability & Renter Profile In ZIP code 49201, 25.8% of the population are renters, indicating a moderate rental market presence. With a population of 49,107, there are approximately 12,675 renters in the area. The occupancy rate of 92.5% suggests that the rental market is relatively tight, with few vacant units available. This tightness can lead to higher rents and competition among tenants, especially those relying on Section 8 vouchers. Given that the FMR for a two-bedroom unit is only 18.7% of the median household income, most residents should be able to afford housing without assistance. However, the high Price-to-FMR ratio indicates that affordability remains a challenge for lower-income households who might need to rely on vouchers or other forms of assistance. #### Investor Angle From an investor perspective, the ZIP code 49201 presents a mixed picture. While the median household income is relatively high at $74,484, the high Price-to-FMR ratio suggests that properties are overpriced relative to what the government will reimburse through Section 8 vouchers. A two-bedroom unit priced at $185,554 would generate a monthly rent of about $1283, which is significantly higher than the $1160 FMR. This implies that investors focusing on Section 8 vouchers would likely face negative cash flow unless they can secure additional subsidies or have a strategy to increase the value of their properties over time. The investment grade in this ZIP code is therefore considered low for Section 8-focused investors, given the limited number of units that would be profitable under the current FMR structure. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced closer to the FMR levels. For example, a two-bedroom unit priced at $1160 per month would be more attractive to voucher holders and potentially offer better cash flow. This could involve purchasing older homes or apartments that are less expensive compared to newer constructions. 2. **Consider Mixed-Income Developments**: Given the high median household income, developing mixed-income properties could be a viable strategy. These developments would include a mix of market-rate and subsidized units, allowing investors to balance the lower returns from Section 8 units with higher returns from market-rate units. This approach could also help in attracting a broader range of tenants and reducing vacancy rates. 3. **Leverage Community Programs**: Engaging with local community programs and partnerships could provide additional financial support. Some cities offer tax incentives, grants, or other subsidies for affordable housing projects. By aligning with these initiatives, investors could offset some of the financial risks associated with the high Price-to-FMR ratio. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 49201 is to **Skip**. The high Price-to-FMR ratio and the limited number of units that would be profitable under the current FMR structure make this a challenging market. However, for investors willing to consider a broader strategy that includes mixed-income developments or leveraging community programs, there might be opportunities to enter the market with a diversified approach. In summary, while the rental market in ZIP 49201 is tight and has a significant number of renters, the high cost of properties relative to FMR makes it difficult for Section 8-focused investors to achieve positive cash flow. Therefore, unless investors can find ways to mitigate these challenges, it is advisable to look elsewhere for more favorable investment opportunities.

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.