Section 8 Fair Market Rent (FMR) for ZIP 49250 - 2027

Location: Hillsdale County, MI | Metro: Jackson, MI MSA

Investment Score for ZIP 49250

D
Monthly Rent (2BR)
$1,050
Median Price (2BR)
$160,557
1% Rule
0.65%
Annual Yield
7.85%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$760
1 Bedroom$860
2 Bedrooms$1,050
3 Bedrooms$1,390
4 Bedrooms$1,470
5 Bedrooms$1,705
6 Bedrooms$1,910
7 Bedrooms$2,063
8 Bedrooms$2,166

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,050 $160,557 0.65% D
3BR $1,390 $237,002 0.59% F
4BR $1,470 $258,139 0.57% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
5,653
Median Household Income
$65,744
Housing Units
2,602
Renter Percentage
14.7%
Occupancy Rate
88.7%
Renter Occupied
339

The classification of ZIP 49250, Jonesville, MI, on the axes of yield and stability reveals a market that offers modest potential for cash flow but lacks significant indicators of stability for rental investments.

Starting with yield, the Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1010, which is notably higher than the market rent of $821. This suggests that properties participating in the Section 8 program can command rents above the local average, enhancing the potential yield for landlords. The median home value of $200,423 indicates that the investment cost is relatively moderate compared to other markets, making it easier to achieve a positive cash flow when combined with the higher FMR rates.

Moving to stability, the metrics paint a less favorable picture. Only 14.7% of the population are renters, which implies a limited demand for rental properties. The lack of data on the average number of days on the market (DOM) makes it difficult to assess how quickly properties might be rented out. However, the median household income of $65,744 provides some context; while not exceptionally high, it does suggest that tenants may have sufficient income to meet their obligations. Nevertheless, the low percentage of renters indicates that there could be challenges in maintaining a steady occupancy rate, which is crucial for long-term stability.

In conclusion, ZIP 49250 presents characteristics of a market that leans towards being a moderate-yield/moderate-stability zone. The higher FMR compared to market rent supports a decent yield, particularly attractive for those looking to leverage government assistance programs. However, the low proportion of renters and the absence of data on rental turnover rates point to a market where stability cannot be guaranteed. For landlords and small-portfolio investors, this means that while there is potential for above-market rental income, they must be prepared for possible fluctuations in occupancy and cash flow.

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.