Location: Delta County, MI | Metro: Delta County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 49894 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $1,030. This figure represents the maximum amount that the federal government will pay to landlords who participate in the Housing Choice Voucher program for a unit of this size.
The SAFMR does not account for local market rents, which are currently listed as N/A. This discrepancy can be significant, as local market conditions often differ from the standardized federal estimates. For instance, if the local market rent is higher than the SAFMR, landlords may find themselves receiving less than they would from a market-rate tenant. Conversely, if the local market rent is lower, participating in Section 8 might still be financially viable.
A voucher payment consists of two parts: the tenant's contribution and the government's subsidy. Tenants are required to contribute 30% of their adjusted income toward the rent. Additionally, there are utility allowances that vary based on the type of unit and the number of bedrooms. For a two-bedroom apartment, the utility allowance is typically included in the SAFMR figure.
To illustrate, let's assume a tenant's adjusted income is such that their contribution towards the rent is $300. In this case, the government would cover the remainder of the rent up to the SAFMR limit. Thus, the total reimbursement to the landlord would be the sum of the tenant's contribution and the government subsidy, which equals $1,030.
The reimbursement gap or surplus is the difference between the local market rent and the SAFMR. Since the local market rent is not available, we cannot calculate the exact gap or surplus. However, if the local market rent were higher than $1,030, the landlord would face a gap, meaning they would receive less than what they could charge in the open market. If the local market rent were lower, the landlord would have a surplus, receiving more than the typical market rate.
In conclusion, for a two-bedroom apartment in ZIP code 49894, the landlord can expect a reimbursement of $1,030 per month under the Section 8 program. The actual financial impact depends on the local market conditions, which are currently unspecified. Landlords must weigh this guaranteed payment against the potential risks and benefits of renting to market-rate tenants.
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.