Location: Lansing-East Lansing, 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 | $1,020 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $174,700 | 0.75% | D |
| 3BR | $1,670 | $253,079 | 0.66% | D |
| 4BR | $1,720 | $297,725 | 0.58% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 49251 in Leslie, Michigan, provides insight into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom unit in FY 2024 is set at $1110 annually, while the market rent based on Census ACS data is $1,070 per month. To derive the gross yield, we annualize these figures and compare them to the median home value of $235,567.
Using the FMR, the annual rental income would be $1110 * 12 = $13,320. This results in a gross yield of approximately 5.65% when divided by the median home value ($13,320 / $235,567).
With the market rent figure, the annual rental income would be $1,070 * 12 = $12,840. This gives a gross yield of about 5.45% ($12,840 / $235,567).
The implied gross-yield for the Section 8 scenario is 5.65%, while the market rent scenario yields 5.45%. Given that the renter density in the area is only 15.0%, it suggests that the majority of homes are owner-occupied, which could impact the demand for rental properties. Additionally, the N/A-day Days on Market (DOM) indicates either insufficient data or a market where sales activity is minimal, further supporting the idea of a low rental market.
While both scenarios offer a relatively low gross yield compared to other investment options, the Section 8 scenario is more stable due to government guarantees on timely payments. However, the actual market conditions, as indicated by the lower renter density, suggest that the market rent scenario might be more reflective of the true rental environment. Therefore, for small-portfolio investors, the market rent scenario's gross yield of 5.45% is likely a more realistic expectation, despite being slightly lower than the Section 8 scenario's 5.65%.
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.