Location: Osceola County, MI | Metro: Clare 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 | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $216,537 | 0.57% | F |
U.S. Census Bureau data (2024)
In ZIP 49665, the economics of Section 8 housing can be clearly defined using the latest figures available. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $970 per month for FY 2026. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent in this specific ZIP code. However, it's important to note that the local market rent for a similar unit is currently priced at $804 per month, according to the Census ACS.
The SAFMR is not the only factor in determining the actual payment a landlord receives. To understand the total reimbursement, we must also consider the tenant's portion of the rent and any utility allowances. Under the Section 8 program, tenants typically contribute 30% of their adjusted income towards rent. For simplicity, let's assume a tenant's contribution is $250. In addition to the rent, there may be an allowance for utilities. For ZIP 49665, this allowance is usually around $200.
To calculate the total reimbursement, add the tenant's contribution and the utility allowance to the SAFMR. Thus, the total reimbursement would be approximately:
This calculation shows the potential monthly income a landlord could receive if they participate in the Section 8 program for a two-bedroom apartment in ZIP 49665. However, it's crucial to compare this against the local market rent to determine whether there is a surplus or a gap.
Given that the local market rent is $804, the difference between the total reimbursement and the market rent is a surplus of $616 per month. This means landlords can expect to receive significantly more than the average market rent for a two-bedroom apartment in this ZIP code when participating in the Section 8 program.
It's important to recognize that while the SAFMR is the cap for the government's contribution, the total reimbursement including the tenant's share and utility allowance can exceed the local market rent, providing a financial advantage to landlords who choose to accept vouchers.
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.