Location: Wexford County, MI | Metro: Manistee County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,950 |
| 5 Bedrooms | $2,262 |
| 6 Bedrooms | $2,533 |
| 7 Bedrooms | $2,736 |
| 8 Bedrooms | $2,873 |
U.S. Census Bureau data (2024)
In ZIP 49638, the Section 8 program operates under specific economic guidelines that affect how much landlords can expect to be reimbursed when renting out a two-bedroom property. The SAFMR (Small Area Fair Market Rent) for a 2BR unit in this ZIP code is set at $1,140 for the fiscal year 2026. This figure represents the maximum amount that a Section 8 voucher can cover for rent in this area. However, it's important to note that the local market rent for a similar 2BR unit is lower, at $1,026 according to the latest Census ACS data.
A landlord participating in Section 8 should understand that the actual reimbursement they receive will be influenced by several factors including the tenant's portion of the rent and any utility allowances. The tenant is required to pay 30% of their adjusted income towards rent, while the government covers the remaining portion up to the SAFMR limit. Additionally, utility allowances are provided to help offset costs associated with electricity, gas, water, and sewer services. These allowances vary but typically add around $200-$300 to the total monthly reimbursement.
To illustrate, if a tenant's portion of the rent is $300 and the utility allowance is $250, the total reimbursement a landlord would receive would be $550 from the tenant plus $590 from the government, totaling $940. This amount is calculated based on the tenant's income and the government's contribution, ensuring that the total does not exceed the $1,140 SAFMR cap. In this scenario, landlords are effectively receiving a reimbursement that is below the local market rent of $1,026.
The typical reimbursement gap or surplus for a 2BR unit in ZIP 49638 can be quantified as follows. Given the local market rent of $1,026 and the average reimbursement under Section 8 conditions described above, there is usually a shortfall of about $86 per month. This means landlords would have to accept a slightly lower rent compared to the local market average to participate in the Section 8 program for this ZIP code.
It's crucial for landlords to carefully consider these economics before deciding to rent to Section 8 tenants in ZIP 49638. While the program ensures stable rental income, it also comes with a slight reduction in the potential rental revenue compared to the non-voucher market rates.
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.