Location: Lenawee County, MI | Metro: Ann Arbor, 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 | $1,230 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,250 | $183,257 | 0.68% | D |
| 2BR | $1,500 | $234,017 | 0.64% | D |
| 3BR | $1,790 | $308,868 | 0.58% | F |
| 4BR | $1,980 | $395,364 | 0.5% | F |
| 5BR | $2,297 | $474,132 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 49230, located in Brooklyn, Michigan, within Jackson County, operate under specific financial guidelines that directly impact landlords and small-portfolio investors. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1250. This figure is crucial because it represents the maximum amount that the housing authority will pay toward a tenant's rent. However, it's important to note that the local market rent for a similar unit is currently $1,197, according to the latest Census ACS data.
A Section 8 voucher does not cover the entire rent. Instead, it reimburses a portion of the rent based on the tenant's income and the SAFMR. Typically, the tenant is responsible for paying approximately 30% to 40% of their adjusted monthly income toward rent. The voucher then covers the difference between the tenant’s payment and the SAFMR, up to the limit of $1250. Utility allowances are also factored into the total compensation, but these vary depending on the specifics of the voucher and the tenant's needs.
To illustrate, let's assume a tenant has an adjusted monthly income of $1,000. At a 30% contribution rate, the tenant would pay $300 toward the rent. If the SAFMR is $1250, the voucher would cover the remaining $950. However, if the actual market rent is $1,197, the landlord would receive $300 from the tenant plus $950 from the voucher, totaling $1,250. In this case, the landlord would be overpaid by $53 compared to the market rent, which is a surplus.
If the market rent were higher than the SAFMR, say $1,300, the landlord would still only receive the maximum SAFMR amount of $1250, with $300 coming from the tenant and $950 from the voucher. This would result in a reimbursement gap of $50 for the landlord.
In summary, for ZIP 49230, the typical reimbursement scenario for a two-bedroom apartment is a surplus of $53 above the market rent when the SAFMR is fully utilized. Conversely, if the market rent exceeds the SAFMR, there can be a significant gap where the landlord must absorb the difference.
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.