Location: Keweenaw County, MI | Metro: Houghton County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
U.S. Census Bureau data (2024)
The Section 8 economics in ZIP 49917 operate under the federal guidelines that determine the Fair Market Rent (FMR) for subsidized housing. For a two-bedroom apartment, the SAFMR for FY 2026 is set at $1,020. This figure represents the maximum amount that the Housing Choice Voucher program will pay to landlords on behalf of eligible tenants.
However, it's important to note that the local market rent for a two-bedroom unit is currently $817, according to the latest Census ACS data. This indicates that the SAFMR is higher than the average market rent in the area, which could be beneficial for landlords.
When a tenant uses a Section 8 voucher, they are required to contribute a portion of their income towards the rent. Typically, this contribution is 30% of their adjusted monthly income. Once this amount is determined, the voucher will cover the remaining portion of the rent up to the SAFMR limit of $1,020. Additionally, there are utility allowances that can vary but are generally modest.
To illustrate, if a tenant's income is such that they must pay $300 towards the rent, the voucher would then cover the difference between this amount and the SAFMR. In this case, the voucher would reimburse the landlord $720 ($1,020 - $300), assuming no utility allowance adjustments. If the utility allowance is, say, $100, the total reimbursement to the landlord would be $820 ($720 + $100).
Given that the local market rent is $817, a landlord might find that the voucher reimbursement plus any utility allowance could slightly exceed the typical rental price in the area. This means that landlords in ZIP 49917 could potentially see a surplus when renting to Section 8 tenants, as the reimbursement rates are higher than the average market rent.
In summary, landlords should expect a typical reimbursement for a two-bedroom unit to be around $820, considering a modest utility allowance. This results in a surplus of about $3 compared to the local market rent of $817, making participation in the Section 8 program financially viable and potentially advantageous in ZIP 49917.
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.