Location: Jackson, MI | Metro: Battle Creek, 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 | $790 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $120,133 | 0.92% | C |
| 3BR | $1,390 | $148,416 | 0.94% | C |
| 4BR | $1,490 | $179,469 | 0.83% | C |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 49224 (Albion, MI) for Section 8 investment, they should follow a structured decision-making process based on the following criteria:
1. Does the Fair Market Rent (FMR) of $940 cover the debt service on a $148,629 property?
Yes. The FMR of $940 is sufficient to cover the debt service on a property valued at $148,629. This means that a landlord can expect the rental income to meet their financial obligations, including mortgage payments, property taxes, and insurance.
No. If the FMR does not cover the debt service, then the landlord would be operating at a loss and should reconsider investing in this area. However, based on the given data, the FMR does cover the debt service.
It Depends. In cases where the FMR is marginal, the landlord might need to consider additional factors such as potential for rental increases or other sources of income.
2. Is the market rent of $837 above, at, or below the FMR?
Above. If the market rent were above $940, it would indicate a strong local rental market, potentially allowing the landlord to charge higher rents outside of Section 8.
At. If the market rent matched the FMR exactly, the landlord would be able to charge the FMR without any premium, which is still viable but less profitable.
Below. The market rent of $837 is below the FMR of $940. This suggests that Section 8 properties could command slightly higher rents compared to the general market, providing an advantage to landlords who can secure these tenants.
3. Are 29.1% renters and N/A-day days on the market (DOM) enough demand?
Yes. With 29.1% of the population being renters, there is a significant base of potential tenants. The lack of specific data on days on the market (DOM) indicates either low turnover or consistent demand, both of which are favorable conditions for maintaining occupancy rates.
No. If the percentage of renters was lower, or if the DOM was high, indicating slow sales or rentals, then the landlord might face challenges in finding tenants and sustaining cash flow.
It Depends. While the percentage of renters is substantial, the absence of DOM data requires further investigation into the local housing market dynamics. A landlord should look into the reasons behind the lack of DOM data and assess whether it reflects stable or fluctuating market conditions.
In conclusion, based on the available data, ZIP 49224 appears to be a viable option for landlords interested in Section 8 investments. The FMR sufficiently covers the debt service, the market rent is below the FMR, suggesting a potential for slightly higher rental income, and the rental population is substantial. However, the landlord should conduct additional research to confirm the stability of the local housing market and ensure sustained demand.
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.