Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,600 | $363,465 | 0.44% | F |
| 4BR | $1,720 | $414,622 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 48002 within the Detroit-Warren-Livonia, MI HUD Metro FMR Area reveals several key points regarding its viability for Section 8 real-estate investment.
Firstly, does the rent math work? The Fair Market Rent (FMR) for ZIP 48002 in fiscal year 2024 is set at $1500. However, the market rent as reported by the Census ACS stands at $784. This indicates that the rent math does not work favorably for landlords, as the FMR is significantly higher than the actual market rent. Landlords would be receiving a subsidy that exceeds the typical rental rate in this area, which could be advantageous if they can secure tenants willing to pay the higher subsidized amount.
Secondly, is acquisition affordable? The median home value in ZIP 48002 is $348,990. With no available data on days on market (DOM) or the percentage of homes that have had their prices cut, it's challenging to assess the overall affordability of acquiring properties. However, the median home value suggests that purchasing a property here could be relatively expensive compared to other areas with lower median values.
Lastly, is there tenant demand? The population of ZIP 48002 is 3,120, with a renter share of 1.7%. This low percentage of renters implies that there might not be a substantial demand for rental properties in this area. Given the limited number of potential tenants, securing long-term occupancy could be difficult.
In conclusion, while the Section 8 subsidy provides a higher rent figure than the current market rate, making it potentially profitable for landlords who can attract subsidized tenants, the overall picture is less favorable. The high median home value suggests that acquisition costs are steep, and the low renter share indicates minimal tenant demand. These factors combined suggest that ZIP 48002 may not be an ideal location for small-portfolio investors looking for affordable acquisitions and steady tenant demand.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.