Location: Hillsdale 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 | $910 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,600 | $251,714 | 0.64% | D |
U.S. Census Bureau data (2024)
In ZIP 49241, the Section 8 program operates under specific economic guidelines that directly impact landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $970 per month for fiscal year 2024. This figure represents the maximum amount that the housing authority will pay towards the rental cost of a unit, ensuring that it is affordable for low-income families.
The local market rent, according to Census ACS data, is slightly higher at $1,022 per month for a similar two-bedroom property. This means that landlords participating in Section 8 in ZIP 49241 must ensure their rents do not exceed $970 to be eligible for full reimbursement from the housing authority. If the rent is higher, the landlord will only receive up to the SAFMR limit, which can result in a loss of income.
A voucher payment under Section 8 is calculated based on the SAFMR, but also includes the tenant's portion of the rent and any utility allowances. Typically, the tenant is required to pay 30% of their adjusted monthly income toward rent. For example, if a tenant's adjusted monthly income is $1,000, they would pay $300 towards rent. The housing authority would then cover the remaining balance up to the SAFMR limit, which in this case is $670.
Utility allowances are additional payments made by the housing authority to help cover the costs of electricity, water, gas, and other utilities. These allowances vary depending on the location and type of dwelling but are generally fixed amounts. In ZIP 49241, the utility allowance is included in the total reimbursement amount, ensuring that the landlord receives a consistent and predictable income stream.
To illustrate, if a landlord charges $970 for a two-bedroom apartment, and the tenant pays $300, the housing authority will reimburse the landlord for the remaining $670. This reimbursement is guaranteed as long as the rent does not exceed the SAFMR and the unit meets all health and safety standards.
The SAFMR being set for this specific ZIP code means that the rate applies only to this area, potentially differing from neighboring ZIP codes or the broader county-level FMRs. This localized approach aims to reflect the actual rental costs in the immediate vicinity, providing a more accurate subsidy level.
Given the SAFMR of $970 and the local market rent of $1,022, there is a potential reimbursement gap of $52 per month for a two-bedroom unit. Landlords should consider this gap when deciding whether to participate in the Section 8 program. While the program offers a reliable source of income, it might not fully cover the market rent, leading to a slight surplus for landlords who can negotiate lower rents or accept the gap as part of their participation.
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.