Location: Jackson, MI | Metro: Jackson, 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 | $840 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $920 | $95,220 | 0.97% | C |
| 2BR | $1,120 | $119,264 | 0.94% | C |
| 3BR | $1,470 | $148,028 | 0.99% | C |
| 4BR | $1,470 | $162,038 | 0.91% | C |
U.S. Census Bureau data (2024)
In ZIP code 49202 of Jackson, MI, landlords considering Section 8 investments must be aware of several potential pitfalls. First, tenant turnover is likely to be high due to the disparity between the market rent of $934 and the Fair Market Rent (FMR) of $1050 for FY 2024. Tenants who are accustomed to lower rents may struggle to meet the higher FMR requirements, leading to frequent moves and increased vacancy rates.
Vacancy exposure is another significant concern. With an average Days on Market (DOM) of 22 days, landlords might face periods where their units remain unoccupied. This can lead to financial strain as the property will not generate rental income during these times. Moreover, the typical home value in the area is $132,701, while the median household income is $42,632. These figures suggest that many homeowners may be financially stretched, potentially resulting in deferred maintenance and a decline in overall property quality.
However, there are factors that mitigate these risks. The renter share in ZIP 49202 stands at 44.8%, which is notably high. This high concentration of renters typically translates into a robust demand for housing vouchers, making it easier for landlords to fill vacancies with tenants who have stable income sources through government assistance. Additionally, the high renter share indicates a strong rental market, which can help stabilize occupancy rates and reduce the impact of individual tenant turnovers.
Despite the challenges posed by tenant turnover and vacancy exposure, the high renter density and corresponding demand for Section 8 vouchers present a favorable environment for landlords. The risk of investing in Section 8 properties in ZIP 49202 is moderate.
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.