Location: Leelanau County, MI | Metro: Benzie County, MI HUD Metro FMR Area
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 | $1,210 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,680 | $635,050 | 0.26% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 49630 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1,390 per month for fiscal year 2026. However, the local market rent, based on Census ACS data, is significantly lower at $1,083 per month. This discrepancy can be advantageous for landlords but also presents challenges.
A Section 8 voucher works by covering the difference between what a tenant can afford and the rent amount. Typically, the tenant is responsible for paying 30% of their adjusted monthly income toward rent. For instance, if a tenant's adjusted monthly income is $1,500, they would pay $450 towards rent. The rest, up to the SAFMR, is covered by the voucher program.
In ZIP 49630, the SAFMR cap means that the maximum reimbursement a landlord can receive for a two-bedroom unit is $1,390. If the tenant's share plus any utility allowances does not reach this amount, the landlord will need to adjust the rent accordingly to ensure it fits within the voucher parameters. Utility allowances are separate payments made directly to the tenant, which do not affect the landlord's reimbursement but reduce the tenant's out-of-pocket expenses.
To illustrate, let’s assume the tenant’s share is $450 and the utility allowance is $150. The total payment would then be $600, leaving a significant gap between the tenant's contribution and the SAFMR. In such a case, the landlord would either have to accept a lower rent or find ways to subsidize the difference.
The typical reimbursement gap in ZIP 49630 for a two-bedroom unit is substantial. Given the local market rent of $1,083, landlords could expect to receive around $1,083 from the voucher program, assuming the tenant’s share and utility allowances fit within these parameters. This leaves a surplus of $307 over the local market rent, which can help cover maintenance costs, vacancies, and other expenses associated with property management.
However, it's important to note that this surplus is contingent upon the tenant’s income level and the specific terms of their voucher. Landlords should carefully review the details of each voucher to understand the exact reimbursement amounts and any additional requirements.
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.