Location: Lenawee County, MI | Metro: Hillsdale 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 | $1,530 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $138,865 | 1.1% | B |
U.S. Census Bureau data (2024)
The ZIP code 49288 presents an interesting landscape for both renters and landlords. With a median income of $66,833, households in this area face significant challenges when it comes to affording the market rate rent of $1,023. This figure represents approximately 19% of the median annual income, which is already a considerable portion of a household's budget.
To put this into perspective, the Fair Market Rent (FMR) set by HUD for the fiscal year 2026 is $1,160. This means that even the government-set standard for affordable housing exceeds the average market rate by a significant margin. For renters, this implies that they would need to find accommodations that either fall below the market rate or seek assistance through housing vouchers to meet their needs without straining their finances.
The rental market in ZIP 49288 is relatively modest, with 21.8% of the 1,483 population being renters. Given the affordability gap between median income and market rents, competition among landlords could become intense as they vie for tenants who can pay the market rate. Landlords might find themselves in a position where offering lower rates or accepting vouchers becomes necessary to attract and retain tenants.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while cash-paying tenants offer a straightforward financial arrangement, the reality of the local economy suggests that voucher acceptance could be crucial for maintaining occupancy rates. The higher FMR compared to the market rate indicates that voucher holders have more flexibility in choosing where to live, potentially giving landlords who accept vouchers an edge in a competitive rental market.
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.