Location: Oceana County, MI | Metro: Lake 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 | $760 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $226,511 | 0.47% | F |
U.S. Census Bureau data (2024)
In ZIP 49402, located in Lake County, Michigan, understanding the economic dynamics of Section 8 housing can significantly impact a landlord's decision to participate in the program. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1,020 per month for fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher Program will reimburse landlords for rent.
The local market rent, according to the Census ACS data, averages at $1,333 per month. This is the typical price landlords might charge for a similar unit outside of the Section 8 program. When a tenant uses a voucher, they are responsible for paying approximately 30% of their adjusted income towards rent, plus any applicable utility allowances. If we assume an average utility allowance of around $200 per month, the total reimbursement to the landlord would be the SAFMR ($1,020) plus the utility allowance ($200), totaling $1,220.
To break it down further:
This means that landlords participating in Section 8 in ZIP 49402 will receive a reimbursement of up to $1,220 per month for a two-bedroom unit. Given the local market rent of $1,333, there is a $113 monthly shortfall between the market rent and the reimbursement rate. Landlords must weigh this gap against the benefits of having a stable tenant who is supported by government funding to ensure timely rent payments.
When deciding whether to accept Section 8 tenants, landlords should consider the SAFMR and market rent in ZIP 49402, along with the utility allowances and tenant contribution. While there is a modest gap between the market rent and the reimbursement rate, the security of regular payments and the potential for long-term tenancy can make this a viable option for many property owners.
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.