Location: Holland-Grand Haven, MI | Metro: Holland-Grand Haven, MI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,550 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,310 |
| 5 Bedrooms | $2,680 |
| 6 Bedrooms | $3,002 |
| 7 Bedrooms | $3,242 |
| 8 Bedrooms | $3,404 |
To understand the economics of Section 8 housing in ZIP code 49422, located in Holland-Grand Haven County, Michigan, it's essential to know the specifics of the rental assistance program. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1260. This figure is crucial because it directly impacts the amount a landlord can receive from the housing authority.
The SAFMR is the maximum amount that the Housing Choice Voucher Program will pay for a unit of housing. However, the actual payment a landlord receives depends on several factors, including the tenant's contribution and any utility allowances. The tenant is generally expected to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1700 for a tenant eligible for Section 8, the tenant would contribute approximately $510 toward the rent.
Utility allowances vary but are typically around $300-$400 per month. For simplicity, let's use a utility allowance of $350. Therefore, the total amount a landlord could expect from the housing authority for a two-bedroom apartment in ZIP 49422 would be the SAFMR ($1260) minus the tenant's contribution ($510), plus the utility allowance ($350).
This calculation yields:
Thus, the landlord would receive $1100 from the housing authority and $510 from the tenant, totaling $1610. Given that the local market rent for a two-bedroom apartment in this area is not available, we must rely on the SAFMR to guide our expectations. The reimbursement gap or surplus can be determined by comparing the total received ($1610) against the market rent. Since the market rent is unknown, we can only conclude based on the SAFMR.
If the market rent were higher than $1260, there would be a reimbursement gap, meaning the landlord would need to accept less than the market rate. Conversely, if the market rent is lower, the landlord would have a surplus, receiving more than they might otherwise in the open market. In ZIP 49422, landlords should anticipate a reimbursement of up to $1100 from the housing authority, with the tenant contributing $510, resulting in a combined total of $1610.
In summary, landlords participating in the Section 8 program in ZIP 49422 will receive a total of $1610 for a two-bedroom apartment, assuming a tenant's adjusted income of $1700 and a utility allowance of $350. The final economic impact hinges on the comparison between this amount and the actual market rent for similar units in the area.
Data Sources: FMR data from HUD (2027).
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.