Location: Jackson, 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 | $1,820 |
| 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 |
|---|---|---|---|---|
| 2BR | $1,500 | $233,533 | 0.64% | D |
| 3BR | $1,820 | $343,864 | 0.53% | F |
| 4BR | $1,980 | $422,599 | 0.47% | F |
| 5BR | $2,297 | $468,922 | 0.49% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 49240, Grass Lake, Michigan, for fiscal year 2024 is set at $1,250. This figure represents the maximum amount that a landlord can receive from the government's Housing Choice Voucher program, also known as Section 8, for renting a unit to a qualified tenant. It is important to note that this is the payment standard and not the actual rent you will charge your tenants.
According to recent Census American Community Survey (ACS) data, the average rent for the area is $1,135. This suggests that the FMR is slightly higher than the typical market rate, which could be advantageous for landlords participating in the Section 8 program. The difference between the FMR and the average rent allows for some flexibility in setting your own rent, though it must not exceed the FMR.
In ZIP code 49240, renters make up 7.4% of the housing market. This indicates a steady but modest demand for rental properties. While the percentage may seem low, it translates into a significant number of potential tenants who could benefit from the Section 8 program, thus ensuring a reliable tenant pool.
If you are considering purchasing a property for your first Section 8 rental, the median home value in the area is approximately $337,785. This figure should factor into your decision-making process when evaluating the potential return on investment. Keep in mind that the initial acquisition cost is just one part of the equation; maintenance, management, and other ongoing expenses also play a crucial role in determining profitability.
Before proceeding with a Section 8 rental in Grass Lake, ensure that your property meets the minimum standards set by the Housing Quality Standards (HQS). These standards are designed to guarantee that the units are safe, decent, and sanitary for tenants. A thorough inspection and any necessary repairs to meet HQS criteria are essential steps to take before applying to the program.
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.