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 | $1,340 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,360 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,360 | $262,124 | 0.9% | C |
| 4BR | $2,370 | $335,409 | 0.71% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 49277 is $91,912, which places it above the national average. However, when considering the market rate for rent at $1,708 per month, the financial landscape becomes more nuanced. A household earning the median income would spend approximately 22% of their monthly income on rent at market rates. This is a significant portion but still within a range that some households might find acceptable, especially if they have additional sources of income or savings.
In contrast, the Fair Market Rent (FMR) payment standard for Section 8 vouchers in ZIP 49277 for fiscal year 2024 is set at $1,110. This means that for a household receiving a voucher, the cost of rent would be significantly lower, around 14% of the median income. The disparity between the market rate and the voucher payment rate highlights a substantial affordability gap for renters without subsidies.
The ZIP code has a relatively low percentage of renters at 4.7%, with a total population of 2,924. This suggests that the rental market is smaller and potentially more competitive for landlords. Given the limited number of renters, landlords must consider the attractiveness of their properties to both voucher holders and those paying market rates. Vouchers provide a guaranteed source of income and stable tenants, while market-rate rentals offer higher monthly revenue.
For landlords, the decision to accept Section 8 vouchers versus relying solely on cash-paying tenants should be based on an analysis of local demand and the competition. Accepting vouchers can ensure steady occupancy and reduce vacancy rates, though it comes with the trade-off of lower rent payments. On the other hand, targeting market-rate tenants can yield higher returns but requires a property that stands out in terms of quality and location.
The takeaway is clear: landlords in ZIP 49277 must weigh the benefits of voucher stability against the potential for higher cash-flow from market-rate rents. Given the small rental market, diversifying to accommodate both groups could be a prudent strategy to maximize occupancy and profitability.
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.