Location: Lenawee County, MI | Metro: Lenawee County, MI
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 | $1,070 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,940 | $197,082 | 0.98% | C |
U.S. Census Bureau data (2024)
In ZIP code 49248, the Section 8 economics can be quite favorable for landlords when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1,540 per month for fiscal year 2026. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program.
The local market rent, according to Census ACS data, is significantly lower at $742 per month for a two-bedroom unit. This indicates that the SAFMR is higher than the average market rent, which benefits landlords participating in the Section 8 program.
A voucher payment under Section 8 consists of the tenant's portion and the utility allowance. The tenant's portion is generally around 30% of their adjusted income. For example, if a tenant's monthly adjusted income is $1,000, they would pay $300 towards the rent. The remainder, up to the SAFMR limit, is paid by the housing authority. In ZIP 49248, this would mean the housing authority would cover the difference between the tenant's contribution and the SAFMR of $1,540.
The utility allowance varies based on the region and the size of the unit. Assuming an average utility allowance of $200 for a two-bedroom apartment, the total reimbursement a landlord receives would be the tenant's portion ($300), plus the utility allowance ($200), plus the remaining amount covered by the housing authority to reach the SAFMR of $1,540.
To illustrate, if the tenant contributes $300 and the utility allowance is $200, the housing authority would pay $1,040 to meet the SAFMR. Thus, the landlord would receive a total of $1,540 per month. This is $798 more than the local market rent of $742, indicating a surplus for landlords who participate in the program.
The SAFMR being set specifically for this ZIP code means that it reflects the local rental market conditions more accurately than a broader metro or county-level rate would. This localized rate helps ensure that the reimbursement amounts are more in line with actual rental costs in the area.
In summary, landlords in ZIP 49248 can expect a reimbursement gap that works to their advantage, receiving $1,540 per month for a two-bedroom unit compared to the local market rent of $742, resulting in a surplus of $798 per month.
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.