Location: Lenawee County, 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 | $830 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $219,835 | 0.54% | F |
| 3BR | $1,480 | $306,673 | 0.48% | F |
| 4BR | $1,560 | $373,620 | 0.42% | F |
U.S. Census Bureau data (2024)
The real estate market in Cement City, MI (ZIP 49233) presents a nuanced picture for both landlords and small-portfolio investors. With a median home value of $274,799, the area reflects a stable housing market, but the lack of data on percentage of listings reduced and median days on market (DOM) suggests that sellers have limited pricing power at present. This absence of reduction percentages and DOM metrics indicates a balanced market where neither buyers nor sellers hold significant leverage.
On the rental side, the Fair Market Rent (FMR) for ZIP 49233 in fiscal year 2024 is set at $1,160, while the current market rent based on Census ACS data is $1,012. This discrepancy signals an opportunity for landlords who can adjust their rents closer to the FMR without alienating tenants. The upward trend in FMR, if sustained, could indicate growing demand or cost pressures in the area, which landlords should monitor closely.
For long-term investors, the setup in Cement City suggests a cautious approach to appreciation expectations. The median home value, while stable, does not point to rapid growth. Without historical appreciation rates or future projections, it's reasonable to assume that any increase in property values will be modest and tied closely to broader economic conditions and local job market trends. Long-hold investors should focus on steady cash flow from rentals rather than speculative gains, given the current data.
Investors should also consider the broader context of the Michigan real estate market. While ZIP 49233 shows a balanced market, regional factors such as employment growth or infrastructure developments could influence local property values. Keeping an eye on these external forces can provide insights into potential shifts in the market that could affect pricing power and rental dynamics.
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.