Location: Holland-Grand Haven, MI | Metro: Holland-Grand Haven, MI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,130 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
U.S. Census Bureau data (2024)
In ZIP code 49428, which encompasses Jenison, MI, in Ottawa County, the Section 8 economics present a clear picture of how federal subsidies interact with local rental markets. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1,250. This figure represents the maximum amount that the federal government will pay toward rent for a two-bedroom unit under the Section 8 Housing Choice Voucher program.
The local market rent for a similar two-bedroom apartment, according to the Census American Community Survey, is $1,729. This indicates that the local market rent significantly exceeds the SAFMR, leaving a gap between what landlords might charge and what the government is willing to subsidize.
A landlord participating in the Section 8 program should understand how the total rent is divided. A tenant's portion of the rent is typically based on their income, with a standard requirement that they pay 30% of their adjusted monthly income toward rent. Utility allowances can vary but are generally intended to cover the cost of utilities for the tenant, reducing their out-of-pocket expenses.
To illustrate, if a tenant's income is such that they would pay 30% toward rent, and assuming a modest utility allowance of around $200, the actual reimbursement a landlord receives from a voucher would be calculated as follows:
This means the total reimbursement to the landlord from the voucher and tenant's contribution would be approximately $1,625 ($1,250 + $375), still falling short of the local market rent of $1,729. Thus, the typical reimbursement gap for a two-bedroom apartment in ZIP 49428 is about $104 per month.
Landlords must decide whether to accept this lower reimbursement or seek non-voucher tenants willing to pay the higher market rates. The decision hinges on factors such as the stability of Section 8 payments, the administrative ease of dealing with the program, and the overall financial health of the property. While there is a shortfall, the predictability and reliability of the government's payment can offer a stable cash flow for landlords.
Data Sources: FMR data from HUD (2027). 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.