Michigan Section8 Fair Market Rent Question

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Hello Everyone! I am regularly amazed at the amount of wisdom that is connected with this site. I am a new investor and cannot find the answer to my question.  I am meeting with a local housing authority in 2 weeks but really don't want to wait that long - I am hoping someone on here already knows.

According to HUD the Fair Market Rent for Oakland County (Michigan) is $863 for a 2 bedroom and $1148 for a 3 bedroom. I am running the rental calculator on multiple properties I am looking at but have heard on a few occasions that the local authority sets the rental rates. Are the FMR the rates or simply a ceiling that provides the local authority to set anything below the FMR? Also; I have heard section8 requires utilities to be included in rent, I have also heard the contrary.

Any insight would be greatly appreciated as the offer price on these home as well as what constitutes a "great deal" changes if the rent I can receive from section8 drops by 35% (as an example.

Have a great weekend!

td