Location: Charlevoix County, MI | Metro: Antrim 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 | $770 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $282,819 | 0.37% | F |
| 3BR | $1,410 | $324,539 | 0.43% | F |
| 4BR | $1,530 | $478,751 | 0.32% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 49727, located in East Jordan, Michigan, within Charlevoix County, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $970 for fiscal year 2026. This SAFMR figure is specific to this ZIP code, reflecting the localized rental market conditions.
In comparison, the local market rent for a two-bedroom unit in ZIP 49727 averages $925, according to Census ACS data. For landlords participating in the Section 8 program, understanding how the reimbursement works is crucial. The SAFMR of $970 represents the maximum amount the Housing Choice Voucher program will pay towards rent for a two-bedroom apartment in this area.
The voucher payment consists of two parts: the tenant's contribution and the utility allowance. Tenants are required to pay 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,617 (based on the latest HUD guidelines), the tenant would contribute approximately $485 per month. The remaining balance, up to the SAFMR, is covered by the voucher program.
In ZIP 49727, the standard utility allowance for a two-bedroom apartment is $325 per month. This allowance is intended to cover the tenant's energy costs, such as electricity and gas, but it does not directly affect the landlord's rent income. It is paid separately to the tenant.
To illustrate, if a landlord sets the rent at the SAFMR of $970, and the tenant contributes $485, the voucher program would reimburse the landlord $485. This brings the total reimbursement to $970, aligning with the SAFMR. However, since the local market rent is lower at $925, the landlord might choose to accept a slightly lower rent to ensure occupancy.
If the landlord accepts a rent of $925, the reimbursement would be calculated as follows: the tenant pays $485, and the voucher program covers the difference, which is $440 ($925 - $485). Thus, the landlord receives a total of $925, with the voucher program paying $440 and the tenant contributing $485.
The typical reimbursement gap or surplus for a two-bedroom voucher in ZIP 49727 is a surplus of $45 when the landlord charges the local market rent of $925. This surplus occurs because the voucher program can cover up to $970, while the actual rent charged is $925, leaving a $45 excess above the local market rate.
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.