Section 8 Fair Market Rent (FMR) for ZIP 49220 - 2027

Location: Lenawee County, MI | Metro: Hillsdale County, MI

Investment Score for ZIP 49220

Monthly Rent (2BR)

$1,050

Median Price (2BR)

$229,906

1% Rule

0.46%

Annual Yield

5.48%

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	$730
1 Bedroom	$810
2 Bedrooms	$1,050
3 Bedrooms	$1,350
4 Bedrooms	$1,460
5 Bedrooms	$1,694
6 Bedrooms	$1,897
7 Bedrooms	$2,049
8 Bedrooms	$2,151

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
2BR	$1,050	$229,906	0.46%	F
3BR	$1,350	$266,776	0.51%	F
4BR	$1,460	$318,506	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,439

Median Household Income

$72,500

Housing Units

1,344

Renter Percentage

15.2%

Occupancy Rate

74.6%

Renter Occupied

152

Addison, Michigan, located in ZIP code 49220, is a suburban community situated in Kent County. It offers a mix of residential and commercial spaces, making it an attractive location for both homeowners and renters. The area benefits from being part of a larger metropolitan region, which influences its housing market dynamics.

The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $980.
The average market rent for Addison, as reported by the Census Bureau's American Community Survey, stands at $726 per month.
The median home value in Addison is $240,965, reflecting a moderate cost of living compared to surrounding areas.
Renters make up 15.2% of the housing market, indicating that a significant portion of the population owns their homes.
The median income for residents in Addison is $72,500, providing insight into the economic profile of the area.

The data points suggest that Addison presents a balanced market for rental properties, with the Fair Market Rent exceeding the current market rent, indicating potential for growth. However, the relatively low share of renters suggests that there might be limited demand for rental units compared to owner-occupied homes. Investors should consider these factors when deciding on property types and pricing strategies. Given the median income levels, the market appears stable and capable of supporting modest rent increases over time, particularly if the trend towards higher FMRs continues.

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.