Location: Ontonagon County, MI | Metro: Baraga County, MI
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
To understand the economics of Section 8 in ZIP code 49952, it's crucial to know the SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment, which is set at $970 for fiscal year 2026. This figure is specific to this ZIP code and reflects the maximum amount that the Housing Choice Voucher program will pay toward a tenant's rent.
The SAFMR of $970 covers several components including the tenant's portion of the rent and utility allowances. Typically, tenants are required to pay 30% of their adjusted income toward rent. If we assume an average adjusted income of $1,500 per month for a Section 8 participant, the tenant would contribute $450 monthly towards rent. This leaves $520 for the landlord to receive from the government as part of the voucher payment.
In addition to the tenant's contribution, the voucher also includes utility allowances. These allowances vary but generally cover the cost of utilities not included in the rent. For simplicity, let's say the utility allowance averages $150 per month. Therefore, the total reimbursement to the landlord would be $520 (government portion) + $150 (utility allowance) = $670.
Given that the local market rent data is currently unavailable, it's important to note that if the actual market rent exceeds the SAFMR, the landlord will face a shortfall. The reimbursement gap is calculated by subtracting the total voucher payment ($670) from the market rent. If the market rent were hypothetically $1,200, the landlord would have to absorb a loss of $530 per unit annually ($1,200 - $670 = $530).
Conversely, if the market rent is below the SAFMR, the landlord would see a surplus. For instance, if the market rent is $800, the landlord would receive an additional $170 per unit annually ($970 - $800 = $170).
Landlords must carefully consider these factors when deciding whether to participate in the Section 8 program. The reimbursement gap or surplus directly impacts the profitability of renting to Section 8 tenants in ZIP 49952.
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.