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 | $860 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,550 | $218,161 | 0.71% | D |
| 4BR | $1,620 | $220,895 | 0.73% | D |
U.S. Census Bureau data (2024)
ZIP 49268, located in Lenawee County, MI metro, can serve as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the favorable financial metrics that support steady and predictable rental income.
The Fair Market Rent (FMR) for ZIP 49268 is set at $1,190 for fiscal year 2026. This figure aligns closely with the market rent of $1,250, indicating that properties in this area are likely to be rented out at or near the FMR. The minimal spread of $60 between the FMR and market rent suggests that landlords can expect consistent cash flow without the need for significant price adjustments. Moreover, the median home value of $216,331 ensures that property values remain stable, reducing the risk of sudden drops in asset value.
While appreciation plays typically involve areas where property prices might rise significantly over time, ZIP 49268 does not offer such potential. The N/A% price-cut share and N/A-day days on market (DOM) indicate a lack of data supporting rapid price appreciation. Therefore, focusing on this ZIP code as an appreciation play would not be advisable.
ZIP 49268 also presents itself as a diversifier due to the 15.6% renter share and a median income of $80,833. These factors suggest a mix of homeowners and renters, which can provide a balanced investment portfolio. However, given the higher median income, it's reasonable to assume that many residents can afford homeownership, making this ZIP code less suitable purely as a diversifier.
In conclusion, ZIP 49268 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. Its stable financial environment, with a small gap between FMR and market rents, ensures reliable and steady income for landlords and small-portfolio investors. This stability is crucial for those seeking to maintain a consistent revenue stream while minimizing risks associated with volatile markets or uncertain rental yields.
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.