Location: Jackson, 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 | $820 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $293,984 | 0.49% | F |
| 4BR | $1,470 | $360,138 | 0.41% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 49259 for Section 8 investment must follow a structured decision-making process. The first step is to evaluate if the Fair Market Rent (FMR) of $990 for the fiscal year 2024 can cover the debt service on a property valued at $262,744. This is crucial because the FMR represents the maximum amount that can be charged for a Section 8 rental.
If the FMR does not clear the debt service, the answer is a definitive No. The landlord would not be able to sustain the financial burden of owning the property without additional income sources. To determine this, calculate the annual debt service and compare it to the FMR. For instance, if the annual debt service exceeds the annual rental income based on FMR, the investment would not be viable.
Next, assess whether the market rent of $1,094 (as per the Census ACS) is above, at, or below the FMR. If the market rent is significantly higher than the FMR, landlords might consider whether they can find alternative tenants willing to pay the market rate, thus potentially making the investment more attractive. However, if the market rent is close to or below the FMR, the answer is It Depends. Landlords need to weigh the benefits of steady government-backed rental income against the lower potential earnings compared to market rates.
The third factor is the demand for Section 8 properties. In ZIP 49259, 8.6% of the population are renters, and the average days on market (DOM) is listed as N/A. Given these figures, the demand analysis is incomplete. Without knowing the DOM, it's impossible to fully gauge the speed at which properties are rented out, which is critical for understanding the liquidity of the investment. Therefore, the answer to whether there is enough demand is also It Depends.
To make an informed decision, a landlord must research further to find the DOM data. If the DOM is low, indicating quick rentals, then the demand could be considered sufficient. Conversely, if the DOM is high, suggesting slow rentals, the demand might not support a Section 8 investment.
In summary, the viability of purchasing a property in ZIP 49259 for Section 8 investment hinges on three key factors: the ability of FMR to cover debt service, the comparison between market rent and FMR, and the sufficiency of demand. Each of these points requires careful consideration and additional data to provide a clear Yes or No recommendation.
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.