Location: Menominee County, MI | Metro: Menominee County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
The economics of Section 8 housing in ZIP code 49845, located in Menominee County, Michigan, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $970 per month for fiscal year 2026. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent for a unit of this size in this specific ZIP code.
The SAFMR is designed to reflect the local rental market conditions, but in this case, the local market rent data is not available. Despite this, the SAFMR serves as an important benchmark for landlords who wish to participate in the Section 8 program.
A landlord who accepts a Section 8 voucher should understand how the payment structure works. The voucher holder is typically responsible for paying 30% of their adjusted income towards rent. This amount is then supplemented by the government to cover up to the SAFMR. Additionally, there are utility allowances which vary based on the type of unit and the location. In ZIP 49845, these allowances would be part of the total compensation package, though specific amounts are not provided here.
To illustrate, if a tenant's share of the rent is $300, the government would pay the remaining $670 to reach the SAFMR of $970. The total reimbursement to the landlord would thus be the sum of the tenant's contribution and the government's subsidy, up to the SAFMR limit.
In ZIP 49845, the typical reimbursement gap or surplus for a two-bedroom rental unit is determined by comparing the SAFMR to the actual market rents. Since the local market rent data is not available, it's impossible to calculate the exact gap or surplus. However, if the local market rent were lower than $970, landlords would receive the full SAFMR, resulting in a surplus. Conversely, if the local market rent were higher, landlords would face a reimbursement gap, receiving less than they might charge a non-voucher tenant.
Landlords must also consider that the SAFMR does not account for all costs associated with renting, such as maintenance, vacancies, and management fees. These factors can influence the overall profitability of participating in the Section 8 program.
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.