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 | $970 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,060 | $91,584 | 1.16% | B |
| 2BR | $1,300 | $136,502 | 0.95% | C |
| 3BR | $1,710 | $187,341 | 0.91% | C |
| 4BR | $1,710 | $226,845 | 0.75% | D |
| 5BR | $1,984 | $262,190 | 0.76% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 49203, located in Jackson, Michigan, within Jackson County, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $1100. This figure is specific to this ZIP code, meaning it reflects the rental rates determined to be fair within 49203 alone.
The local market rent, as indicated by ZORI (Zillow Rent Index), is slightly higher at $1172. This suggests that landlords might find themselves in a situation where the SAFMR is below the prevailing market rates. However, the SAFMR is the ceiling for what a Section 8 voucher will cover, regardless of the actual market rent.
A landlord who accepts a Section 8 voucher must understand that the total rent is split between the tenant and the government. The tenant is responsible for paying approximately 30% of their income toward rent, which can vary widely based on individual circumstances. In addition to the rent portion, there are utility allowances that the voucher program covers. These allowances are designed to help tenants pay for utilities without having to pay out of pocket.
The typical reimbursement process works as follows: if a tenant's income is such that they owe $330 (as an example), the government would then cover the remaining portion up to the SAFMR of $1100. Therefore, the government would reimburse $770 in this scenario. If the local market rent is higher, say $1172, the landlord would still only receive the SAFMR amount of $1100, creating a shortfall of $72 per month.
In ZIP 49203, the SAFMR for a two-bedroom unit is lower than the local market rent, indicating a consistent reimbursement gap for landlords. This gap means landlords will not fully recoup the market rent they could potentially charge other tenants who do not use vouchers. The reimbursement gap for a two-bedroom unit is $72 per month, reflecting the difference between the SAFMR and the ZORI.
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.