Section 8 Fair Market Rent (FMR) for ZIP 49908 - 2027

Location: Baraga County, MI | Metro: Baraga County, MI

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$740
1 Bedroom	$800
2 Bedrooms	$1,040
3 Bedrooms	$1,240
4 Bedrooms	$1,370
5 Bedrooms	$1,589
6 Bedrooms	$1,780
7 Bedrooms	$1,922
8 Bedrooms	$2,018

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,201

Median Household Income

$63,281

Housing Units

1,348

Renter Percentage

30.8%

Occupancy Rate

83.1%

Renter Occupied

345

The economics of Section 8 in ZIP 49908 are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is set at $1,000 per month for fiscal year 2026. This SAFMR represents the maximum amount that the housing authority will pay towards a tenant's rent under the Section 8 program. However, it's important to note that the local market rent for a similar unit is significantly lower, running at $541 per month according to Census ACS data.

To understand what a voucher actually pays, consider the following components:

Tenant Portion: Tenants are required to pay 30% of their adjusted income toward rent. If a tenant's adjusted income is $1,500 per month, they would pay $450 toward rent.
Housing Authority Payment: The housing authority would then cover the difference between the tenant’s portion and the SAFMR. In this case, that would be $1,000 - $450 = $550.
Utility Allowances: Utility allowances are also part of the calculation. These vary but typically add an additional $100-$150 to the total reimbursement.

Therefore, when a landlord participates in Section 8 for a two-bedroom apartment in ZIP 49908, they can expect a reimbursement of around $550 to $650 per month from the housing authority, plus the $450 paid directly by the tenant. This brings the total monthly rental income to approximately $1,000 to $1,100.

Given that the local market rent is $541, participating in Section 8 provides a significant surplus over what the market would normally bear. Landlords can expect a surplus of about $459 to $559 per month on a two-bedroom unit, assuming the SAFMR and tenant payment structure outlined above.

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.