Location: Houghton County, MI | Metro: Houghton County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,160 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 49921 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1,460 per month for fiscal year 2026. This figure represents the maximum amount that the housing authority will pay towards rent for a two-bedroom unit in this specific ZIP code.
In contrast, the local market rent for a two-bedroom apartment in ZIP 49921 is significantly lower at $763, based on recent Census ACS data. This discrepancy highlights the potential financial dynamics for landlords participating in the program.
A Section 8 voucher payment consists of two primary components: the tenant's portion and the housing authority's reimbursement. Tenants are typically required to contribute 30% of their adjusted income towards rent. For the sake of clarity, let's assume a tenant's contribution is $438 per month, which is 30% of an income level that would result in this amount when applied to the SAFMR of $1,460.
Utility allowances are also factored into the equation but vary based on the tenant's specific needs and the housing authority's guidelines. Generally, these allowances can range from $100 to $200 per month. For our example, we'll use an average utility allowance of $150.
Thus, the total reimbursement to the landlord from the housing authority for a two-bedroom unit would be the sum of the tenant's portion and the utility allowance. In this case, it would be $438 (tenant portion) + $150 (utility allowance) = $588 per month. However, since the SAFMR is $1,460, the housing authority will cover the difference between the tenant's contribution and this limit, making the actual reimbursement to the landlord $1,460 - $438 = $1,022 per month.
This calculation shows that landlords in ZIP 49921 who participate in the Section 8 program can expect a reimbursement of $1,022 for a two-bedroom apartment, assuming the tenant's contribution is $438 and the utility allowance is $150. Given the local market rent of $763, landlords would receive a surplus of $1,022 - $763 = $259 per month over the typical market rent for a two-bedroom unit.
To summarize, landlords in ZIP 49921 should understand that the SAFMR sets the upper limit for housing authority reimbursement at $1,460 for a two-bedroom unit. With tenant contributions and utility allowances factored in, the typical reimbursement exceeds the local market rent, resulting in a surplus for landlords who choose to participate in the Section 8 program.
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.