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 | $820 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $233,491 | 0.49% | F |
| 3BR | $1,390 | $358,146 | 0.39% | F |
| 4BR | $1,510 | $424,292 | 0.36% | F |
U.S. Census Bureau data (2024)
The neighborhood in ZIP code 48003, located in Almont, Michigan, is characterized by a relatively small population of 6,339 residents, with only 7.2% being renters. The median household income here stands at $90,452, indicating a generally affluent community. Median home values in this area are also high, at $356,242, which suggests that homeownership is both valued and feasible for many residents.
When it comes to rental economics, the Federal Market Rent (FMR) for ZIP 48003 in fiscal year 2024 is set at $1,110. In contrast, the average market rent, according to Census ACS data, is lower at $968. This discrepancy means that landlords participating in the Section 8 program can expect to receive higher rents compared to the local market rate, effectively subsidizing their properties.
Given these factors, ZIP 48003 is well-suited for hands-off voucher operators. The higher subsidy rate ensures steady and reliable cash flow without the need for active property management. For those interested in value-add strategies, the opportunity to increase rents above the current market rate through Section 8 participation provides a margin for investment in property improvements. However, the low percentage of renters suggests that the overall demand for rental units is limited, making it less attractive for large-scale rental operations. Instead, smaller portfolio investors looking to capitalize on the housing market dynamics and federal subsidies should find this ZIP code a viable option.
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.