Location: Schoolcraft County, MI | Metro: Schoolcraft County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,320 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
U.S. Census Bureau data (2024)
In ZIP 49840, the Section 8 program operates under specific economic guidelines that impact how much landlords can expect to receive from rental subsidies. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $970. This figure represents the maximum amount that the housing authority will pay toward a tenant's rent based on the local rental market conditions.
The local market rent for a similar two-bedroom unit in ZIP 49840 is higher, at $1,167, according to the latest Census ACS data. This difference between the SAFMR and the actual market rent is crucial for understanding the financial dynamics for landlords participating in the Section 8 program.
A Section 8 voucher does not cover the entire rent amount; instead, it covers the difference between the tenant’s portion and the total rent. The tenant is typically responsible for paying 30% of their adjusted income towards rent. For example, if a tenant has an adjusted monthly income of $1,000, they would be expected to contribute $300 toward the rent.
The housing authority then pays the landlord the remaining balance up to the SAFMR limit. If the market rent is $1,167, and the tenant contributes $300, the housing authority would pay $670 to meet the SAFMR of $970. However, this payment is contingent upon the landlord agreeing to the terms of the Section 8 program, including rent restrictions.
In addition to the base rent, there are utility allowances. These vary but generally add a fixed amount to the reimbursement made by the housing authority. Utility allowances can range from $200 to $300 per month depending on the type of utilities included in the lease agreement. This allowance is intended to help cover the cost of electricity, gas, water, and sewerage.
To illustrate, if the utility allowance is $250, the total reimbursement from the housing authority would be $920 ($670 base rent + $250 utilities). This leaves a gap of $247 ($1,167 - $920) that the landlord must either absorb or seek from other sources. Alternatively, if the market rent were lower, say $950, the landlord would receive a surplus of $20 ($970 - $950).
Therefore, for a two-bedroom apartment in ZIP 49840, the typical reimbursement gap is $247, which is the difference between the local market rent and the total amount covered by the Section 8 voucher plus utility allowances. Landlords should carefully consider this gap when deciding whether to participate in the program, as it directly affects their net rental income.
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.