Section 8 Fair Market Rent (FMR) for ZIP 49792 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 49792, located in Cheboygan County, Michigan, revolve around the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,050 per month for fiscal year 2026. This figure represents the maximum amount that a landlord can be reimbursed by the government under the Section 8 program for a unit in this specific ZIP code.

To understand how the voucher system works, it's essential to break down the components of the payment. The total reimbursement is composed of the tenant's portion of the rent and the utility allowance. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. For instance, if a tenant's monthly income is $1,500, they would pay $450 toward rent ($1,500 * 0.30).

The remaining portion of the rent is covered by the housing authority. In the case of a $1,050 SAFMR, the housing authority would cover the difference between the tenant's payment and the SAFMR. Using the example above, if the tenant pays $450, the housing authority would reimburse the landlord $600 ($1,050 - $450), bringing the total to $1,050.

In addition to the base rent, there is also an allowance for utilities. The utility allowance varies but is generally based on the average cost of utilities in the area. If the utility allowance is $200, the landlord would receive this amount in addition to the base rent reimbursement, making the total reimbursement $850 in our example ($600 + $200).

However, since the local market rent for ZIP 49792 is listed as N/A, it's important to note that the SAFMR of $1,050 is the ceiling for reimbursement. Landlords should ensure that their rental rates do not exceed this amount to avoid financial losses.

To illustrate the potential gap or surplus, let's assume a landlord charges $1,100 for a two-bedroom apartment. Given the SAFMR of $1,050, the landlord would face a shortfall of $50 per month unless the tenant's income is high enough to cover the additional amount. Conversely, if the landlord sets the rent at $1,000, they would have a surplus of $50 per month, assuming the tenant's contribution plus the utility allowance equals $1,050.

In conclusion, landlords in ZIP 49792 must carefully consider the SAFMR when setting rental rates for Section 8 tenants. The reimbursement will never exceed $1,050, so any rent above this amount will need to be covered by the tenant. With the utility allowance factored in, the typical reimbursement gap or surplus for a two-bedroom apartment would be determined by the difference between the actual rent charged and the $1,050 SAFMR.

Data Sources: FMR data from HUD (2027).

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.